L/C-NRLF 

HpW  mmmm 

S7S 


1 1 


First  Steps 


...in  iHi 


Bookkeeping 


BOOKMAN   &  BLUE 


PAGES 

Instruction  Book 1-44 

Bills  and  Accounts 45-51 

Cash  Book 52-63 

Purchase  Book 64 

vSalc-  Rook ' 65-67 

Joii'  nal  68 

Trial  Balance 69-71 

Profit  and  Loss 72-76 

Ledger 77-85 


FIRST  STEPS 

IN 

BOOKKEEPING 


A  PRACTICAL  INTRODUCTION  TO  BOOKKEEPING  CONTAINING 
AN  ABUNDANCE  OF  DRILL  WORK  IN   ARITHMETIC 


ARRANGED 

TO  ACCOMPANY  BOOKMAN'S  BUSINESS  ARITHMETIC  OR  ANY 

OTHER  MODERN  ARITHMETIC  IN   EIGHTH 

OR  NINTH  GRADE  WORK 


C.   M.   BOOKMAN 

Business  Manager,  Council  of  Social  Agencies 
CINCINNATI,  OHIO 

FRANZ  S.  BLUE 

Head  Instructor  in  Accounting,  High  School  of  Commerce 
COLUMBUS,  OHIO 


COPYRIGHT,   1917,   BY 

C.     M.     BOOKMAN 

CINCINNATI,  OHIO 


INDEX 


PAGES 

28 
4 


Accounts    

Bills  and  Accounts 

Cash  Defined   22 

Cash  Receipts  Defined 22 

Cash  Payments  Defined 22 

Cash  Balance  Defined 22 

Cash  Book  Defined 22 

Cash  Book  Illustrated -. 22-23 

Cash  Book  Problems 24-25 

Double-Entry  Bookkeeping  40 

Inventory  Defined 35 

Journal  Defined 41 

Journal  Illustrated    42 

Journalizing   Defined    40 

Journalizing  Rules    40 

Ledger  Defined  26 

Ledger  Illustrated 26-27 

Ledger  Closing   42 

Ledger  Ruling  Illustrated 42-43 

Liability  Defined  35 

Net  Worth  Defined 35 

Percentages  Illustrated 30 

Posting  Defined 26 

Posting  Process  Descril)ed 26 

Profit  and  Loss  Statement 30 

Purchase  Book  Defined 35-36 

Purchase  Book  Illustrated 36 

Resource  Defined    35 

Sales  Book  Defined .' 35-36 

Sales  Book  Illustrated 36 

Trial  Balance 29 


TO  THE  PUPIL 


This  course  was  not  prepared  for  the  purpose  of  making  of  you  a  finished 
Bookkeeper.  It  is  intended,  primarily,  to  give  you  as  much  bookkeeping  as 
a  general  education  should  provide,  and  at  the  same  time  offer  excellent  drill 
in  the  practical  applications  of  Arithmetic. 

You  should  assist  your  mother  in  keeping  accurate  accounts  of  household 
expenditures,  and  your  father  in  recording  the  transactions  in  his  business, 
no  matter  what  its  size.  No  business  is  too  small  to  risk  keeping  its  accounts 
in  any  but  the  correct  way.  Many  failures  in  business,  many  worries  in  the 
home  could  be  avoided  if  each  business  and  each  family  understood  the  prin- 
ciples of  bookkeeping,  and  arranged  in  advance  a  budget  of  expenditures. 
One  dollar  earned  and  ninety-nine  cents  spent  means  a  saving  of  one  cent  and 
happiness ;  ninety-nine  cents  earned  and  one  dollar  spent  means  a  deficit 
of  one  cent  and  misery.  Begin  at  once  to  live  within  your  income,  whatever 
it  may  be.  As  your  income  increases,  your  budget  of  expenditures  can  safely 
increase  with  it.  Above  all  things,  make  certain  that  when  you  balance  your 
personal  accounts  at  any  given  period.  Profit,  and  not  Loss,  will  show  in  your 
Ledger.     T-H-R-I-F-T  is  one  way  of  spelling  Happiness. 

Ask  your  teacher  to  help  you  prepare   a  budget  of  expenditures   for  a 

family  the  size  of  yours  with  the  income  your  family  has.     A  budget  set  of 

books  for  a  family  with  an  income  of  $780.00  a  year  has  been  prepared  on 
page  44  of  this  book. 

As  you  start  your  bookkeeping  work,  bear  in  mind  three  things : 

1.  Make  no  entry  until  you  understand  where  it  should  be  made. 

2.  Be  sure  your  calculations  are  right  before  you  enter  the  results ;  the 
hnal  draft  of  your  work  should  be  in  ink.  and  must  not  show  erasures. 

3.  Don't  leave  a  word,  a  sentence  or  a  paragraph  until  you  are  sure  you 
understand  all  it  means. 

'  A  mistake  of  1  cent  indicates  a  poor  bookkeeper  just  the  same  as  a  mis- 
take of  a  thousand  dollars  would.     You  must  be  accurate. 


3G0396 


BILLS  AND  ACCOUNTS. 

A  statement  of  the  quantity  purchased  and  the  price  per  unit  is  always 
made  out  with  every  purchase.  Mistakes  are  usually  located  in  this  way.  At 
the  same  time  a  copy  of  this  statement  is  retained  by  the  salesman  from  which 
to  make  the  entry  in  the  permanent  account  books.  If  the  sale  is  a  cash  one 
the  transaction  is  closed  ;  if  the  goods  are  bought  on  credit,  on  the  first  of  the 
month  an  additional  statement  is  sent  to  the  purchaser. 

The  pages  of  problems  which  follow  contain,  primarily,  drill  work  on  the 
making  of  Bills  and  Statements,  the  extension  of  each  item,  and,  finally,  the 
grand  total.  One  problem  in  each  lesson  must  be  set  up  in  ink  on  the  special 
bill  forms  provided  in  this  book.  The  name  of  the  company  doing  the  selling 
is  the  Capitol  City  Retail  Co.,  located  at  3  West  7th  St.,  Columbus.  Ohio. 
If  a  purchaser  is  not  named  in  the  problem,  the  student  is  to  be  considered  the 
purchaser. 

In  addition  to  the  drill  work  on  Bills  and  Statements,  from  time  to  time 
problems  affording  review  work  on  different  subjects  in  Business  Arithmetic 
are  provided. 

Note  1.     Make  your  extensions  mentally  whenever  possible. 

2.  Fractions  of  a  cent  when  less  than  a  half  cent  are  ignored ; 
when  greater  than  a  half  cent  they  are  counted  as  one  cent.  In  first  item  of 
Problem  1,  6  times  9.2c  is  55.2c;  the  .2c  is  dropped.  In  item  three.  3  times 
7.5c  is  22.5c ;  the  amount  carried  forward  is  23c. 


EXERCISES. 
1. 


August    10,   1916. 


Tlie  Capitol  City  Retail  Co., 

3  West   Seventh   St., 

Columbus.   Ohio. 


Sold  to 

FR.\NK  jr)NES 

12  West  Ninth  Street 


July  19 


July  21 


6  lbs.  cut  loaf  sugar 9.2c  55 

7  lbs.  powdered    sugar 8c  56 

3  lbs.  rice  7.5c  11 

5  lbs.   prime  lard 14c  70 

XYi  lbs.  ham    22c  II 

lib.    Creamery    butter 3,V-  II 


The  Capitol  City  Retail  Co., 

3  West  Seventh  St., 

Columbus,   Ohio. 


Sold  to 

FRA\K  JONES 

11  West  Ninth  Street 


August  11,  1916. 


I  XYt.  lbs.  New   York  cheese 18c 

2  lbs.   Creamery   spec,   oleomargarine.  ...  18j/4c 
2^.  doz.    Prime   firsts   eggs 24c 

1  lb.  Java    coffee    27c 

1/  lb.  Breakfast   bacon    23c 

XYz  lb.  dried   beef 30^c 

2  bu.  peaches   $3.50 


3. 


The  Capitol  City  Retail  Co., 

3  West  Seventh  St., 

Columbus,   Ohio. 


August  12,   1916. 


Sold  to 

FRANK  JONES 

11  West  Ninth  Street 


2  cantaloupes     1   for   25: 

V2  bu.  tomatoes $1-50  per  bu. 

3  lbs.  granulated  sugar 7;^c 

1   box  laundry  soap $2.50 

3  boxes   matches    5c 


Make  out  and  extend  bills  for  the  following  purchases: 


Mrs.  James  Bryan,  16  Locust  street,  telephoned  the  following  order  to 
the  Capitol  City  Retail  Company:  .       1- 

Three  cans  of  beans,  15c  per  can;  2  bunches  of  celery,  2  bunches  for  loc; 
1  head  cabbage,  7c;  Yz  peck  potatoes,  $1.75  per  bu. ;  3  lemons,  2  for  5c;  2  lb. 
rib  roast,  27c  per  lb. ;  1  dozen  bananas,  18c ;  1  loaf  bread,  10c. 

5. 

Mrs.   Bryan  purchased  from  the  Capitol   City  Retail   Coiupany  the  fol- 
lowing :  (to  nn 
1   pair  children's   shoes  $2.00 
5^  yds  cotton  goods,  7^c  per  yd 
3  children's  dresses  at  75c  each 
3  pairs  stockings,  50c  each 
1   umbrella  l-^^ 
3>4  yds  silk  goods  at  $1.75  per  yd 


A.  J.  Walters  ordered  the  following  bill  of  goods  from  the  Capitol  City- 
Retail  Company : 

1  lawn  mower.  $7.00;  45  ft.  rubber  hose  at  15c  per  foot;  1  garden  rake, 
$1.00;  a  brace  and  7  auger  bits;  the  brace  was  quoted  at  $1.25  and  the  bits  at 
25c  each. 


7. 


August  15,  1916. 


Jones  &  Barnes  Co., 
Birmingham,  Ala. 


Bought  of 

The  Capitol  City  Retail  Co. 

3  W.  Seventh  St..  Columbus,  O. 

Yz  gr.  Kum  Bak  games  at  $48  per  gross' 
2  doz.  Marathon  Racers  at  $12  a  dozen 
3/2  doz.  3  Way  Cars  at  $18  per  dozen 
3/2  gro.  Hi-Lo  Games  at  $24  per  gross 

8. 

The  Capitol  City  Retail  Co.  sold  the  following  bill  of  hardware : 
17  gross  No.  8  screws  at  87c  per  gross 

1  2-3  doz.  locks  at  $12.60  per  dozen 

y^  dozen  2^-inch  bolts  at  $1.25  per  dozen 

2  1-12  doz.  bolts  at  $3.60  per  d6zen 

9. 

503  yds  muslin  at  ll^k;  162  yds  cotton  goods  at  634c;  7S  yds  madras  at 
19c;  57  yds  denim,  at  16c;  37  yds  silk  at  $1.02. 

10. 

72  lbs.  of  butter  at  323;<c  ;  43  lbs.  cheese  at  19c;  12  dozen  eggs  at  .24c ;  5 
bu.  apples  at  $2.10  per  bu. 

11. 

Tohn  Jones,  during  vacation  time,  started  a  lemonade  stand.  His  father 
gave"  him  $10  with  which  to  buy  supplies.     His  bill  follows: 

2  boxes,  25c  each  ;  10  sq.  ft.  of  awning  at  $1.25  per  yd ;  2  boards  10  ft.  by 
1  ft.  by  1/2  inch,  30c  each;  1  box  lemons  at  $6.50  per  box;  3  lbs.  of  sugar  at 
73/^c  per  lb. 

12. 

9  lbs.  3d  nails  at  73^c  ;  4  lbs.  sash  cord  at  40c;  16  -  8b  weights  at  $1.50 
per  C.  lb.;  16  locks  at  80c  per  dozen  ;  13^  dozen  bolts  at  25c  per  dozen  ;  3  ~  5 
Dz.  irons  at  6J/2C  per  ounce. 


13. 

The  Capitol  City  Retail  Company  sold  the  following  supplies  to  James 
Warren : 

1  set  of  seat  covers  at  $17;  10  gals,  gasoline  at  24c;  2  bearings  at  $2.55 
each  ;  2^2  hours  of  labor  at  65c  per  hour. 

Make  out  a  bill  for  the  above  purchase,  using  the  form  used  in  Problem  7. 

14. 

Extend  and  foot  the  following  bill  : 

Z2  lbs.  of  putty  at  5j^c ;  7  lbs.  of  brads  at  Q^^^c ;  18  pans  at  24c  per  dozen  ; 
3  boilers  at  $12.50  per  dozen  ;  9  pails  at  $1.75  per  dozen. 

15. 

A  farmer's  weekly  statement  shows  the  following  expenditures.  Arrange 
in  proper  form  and  find  the  total  expended. 

16  bu.  of  coal  at  lie  per  bu. ;  3  hogs  weighing  respectively  210,  200  and 
275  lbs.  at  7^c  per  lb. ;  25  bu.  of  corn  at  45c  per  bu. ;  3  bu.  of  potatoes  at  $1.05 
per  bu. 

16. 

Prepare  a  bill  for  the  following  sale : 

1050  bu.  of  wheat  at  $1.35;  3000  bu.  of  corn  at  87c;  1520  bu.  of  oats  at 
44>4c  ;  1280  bu.  of  rye  at  $1.03i/> ;  240  bu.  clover  seed  at  $10.45. 

17. 

A  grain  broker  sold  the  following  goods.  Make  out  the  bill  and  extend 
the  footings : 

24.500  bu.  No.  2  red  wheat  at  $1.38:  15,375  bu.  No.  3  white  corn  at  85c; 
2,650  bu.  No.  2  yellow  corn  at  86^c  ;  2,135  bu.  No.  2  mixed  corn  at  853^c. 

18. 

A  hay  dealer's  transactions  for  one  day  were  as  follows: 

27  tons  No.  1  timothy  at  S15  ;  85  tons  No.  2  timothy  at  $13 ;  125  tons  No. 

3  timothy  at  $11  ;  128  tons  No.  1  clover,  mixed,  at  $1334 ;  325  tons  No.  2  clover, 

mixed  at  $11.50;  280  tons  No.  1  clover  at  $11  ;  390  tons  No.  2  clover  at  $9;  16 

tons  oats  straw  at  $7.50;  15  tons  wheat  straw  at  $7;  13  tons  rye  straws  at  $8^^. 

Arrange  the  above  in  proper  form  and  extend  the  total. 

19. 

Extend  and  foot  the  following  purchase : 

13  bbls.,  50  lbs.  to  the  bbl.,  of  winter  patent  flour  at  $6.75  per  hundred 
pounds;  92  bbls.,  40  lbs.  to  the  barrel,  of  low-grade  flour  at  $4.25  per  C;  210 
bbls.  of  rye  flour,  38  lbs.  to  the  bbl.,  at  $5.35  per  C. 

20. 

Extend  and  foot  the  following  bill  for  mill  feed  which  is  sold  in  100-lb. 
sacks. 

325  sacks  bran  at  $20^;  210  sacks  middlings  (coarse)  at  $25.50;  296 
sacks  of  mixed  feed  at  $22.50;  195  sacks  of  middlings  (fine)  at  $27.50.  The 
sacks  to  cost  2c  each. 

21, 

A  grocer  bought  his  supply  of  butter  as  follows : 

24  lbs.  creamery  (whole  milk)  at  32j/<c;  15  lbs.  of  centralized  extra  at 
30c;  12  lbs.  of  centralized  first  at  26^c;  18  lbs.  of  centralized  seconds  at 
23>4c;  36  lbs.  dairy  fancy  at  23c;  55  lbs.  packing  stock  No.  1  at  21>4c;  13  lbs. 
of  packing  stock  No.  2  at  20c. 

Find  the  total  after  arranging  in  bill  form. 


22. 

The  quotations  on  cheese  for  August,  1916,  were  as  follows : 

Ohio   17c;   New   York   18c;   Northwestern    17c;   Swiss   loaf  37i/^c;  brick 

17c;  limburger  17i^c.    A  grocer  bought  15  lbs.  of  each;  make  out  his  bill  in 

proper  form. 

23. 

The  feather  market  shows  the  following  quotations:  Pure  white  goose 
(dry)  67c;  good  average  white  56c;  largely  gray  at  47c;  largely  gray  scalded 
37i^c;  pure  white  duck  46>4c ;  stained  and  scalded  at  35>4c;  d'ark  35c; 
chicken  body,  all  white  (dry  picked)  20c;  chicken  body  all  dark  (dry  picked) 
3c;  tails  (no  skirts)  40c;  wings  (no  shorts)  20c.  Make  out  a  bill  for  150  lbs. 
of  each  grade. 

24. 

Fred  Haller.  a  dealer  in  hides,  received  the  following  shipments: 
On  Aug.  1.  200  lbs.  No.  1  green  salted  at  17j4c;  250  lbs.  No.  2  at  16i/^c; 
on  Aug^  20,   150  lbs.  butcher  green  salted  city  at  173/2c;  50  lbs.  country  at 
14^c;  7S  lbs.  calfskin  at  24>4c.     Make  out  such  statement  of  account  as  he 
would  receive  on  Sept.  1st. 

25. 

The  oil  market  quotes  the  following: 

Ohio  carbon  120  degrees  flash  test  at  8c;  Ohio  carbon  150  degrees  at 
8>4c ;  headlight  175  degrees  at  9^c ;  Red  crown  gasoline  at  23c ;  naptha  at 
27c;  lard  oil  No.  1  at  87c;  cottonseed  oil,  refined,  at  81c.  Render  a  statement 
Aug.  1  for  1,250  gals,  of  each,  bought  on  July  15. 

26. 

Find  the  cost  after  first  making  out  the  proper  bill  of  the  following 
painter's  supplies : 

20  bbls.  linseed  oil,  50  gal.  to  the  bbl.  (raw)  74c;  16  bbls.  turpentine  at 
50c  per  gal;  3  500-lb.  kegs  of  pure  white  lead  at  IOV2C  per  lb.;  2  300-lb.  kegs 
at  12>^c. 

27. 

A  cattle  dealer  on  August  10  bought  the  following: 

175  head  medium  heavy  steers,  averaging  1000  lbs.  at  %7 jt>  per  C;  22'b 
butcher  steers  averaging  800  lbs.  at  $6.67  per  C. ;  75  heifers  averaging  300  lbs. 
at  $5.90  per  C. ;  80  milch  cows  at  $35  each  ;  45  cows  averaging  600  lbs.  at  $4.95 
per  C.    Make  out  the  statement  rendered  on  Sept.  1. 

The  quotations  on  hogs  are  as  follows:  Good  to  choice  heavies  (300  lbs. 
or  over).  $10.17  per  C. ;  mixed  medium  and  lights  (120  lbs.  to  300  lbs.),  $10.12 
per  C. ;  common  to  good  pigs  (50  lbs.  to  120  lbs.),  $8.10  per  C. ;  common  to 
choice  heavy  sows,  $7.60  per  C. ;  stags,  $6.75  per  C. 

Make  out  statements  or  bills  for  the  following  purchases,  using  the  above 
quotations,  dating  them  the  first  of  the  month  following  date  of  purchase. 

28. 

Feb.  2,  250  good  to  choice  heavies  averaging  320  lbs. 

Feb.  5,  325  lights  averaging  137  lbs. 

Feb.   10,  75  good  pigs  averaging  78  lbs. 

Feb.  21,  128  choice  heavy  sows  averaging  350  lbs. 

Feb.  28,  15  stags  averaging  275  lbs. 


29. 

March  29,  75  lights  averaging  140  lbs.;  274  good  pigs  averaging  110  lbs.; 
118  choice  heavy  sows  averaging  300  lbs. 

30. 

Dec.  3,   17S  choice  heavies  averaging  310  lbs.,  225  good  pigs  averaging 

Dec.  12,  55  choice  heavy  sows  averaging  250  lbs..  416  lights  averaging 
137  lbs. 

Use  the  following  coffee  quotations : 

Rio       Santos 

Prime    It^  ^JVj 

Good   43/8  f/4 

Fair 14^4  157/8 

Low  Fair 137^  J5% 

Good  Ordinary 3.>4  14^'^ 

Ordinary    3/.  \\H 

Low   Ordinary l^-'s  13% 

Fancy  Guatemala  \hA 

Good  Guatemala \^/^ 

Mocha 29  30 

Java    -^  ^^ 

31. 

Oct.  21,     300  lbs.  Prime  Rio 
Oct.  23,     275  lbs.  Good  Santos 
Oct.  25,  1248  lbs.  Fair  Rio 
Oct.  28  1562  lbs.  Fair  Santos 

32. 

Feb.  17,     175  lbs.  Good  Rio 

1372  lbs.  Low  Fair  Rio 

1582  lbs.  Good  Ordinary  Santos 

Feb    23,  1672  lbs.  Ordinary  Rice 

682  lbs.  Low  Ordinary  Santos 

2362  lbs.  Fancy  Guatemala 

33. 

July  23.     382  lbs.  good  Guatemala 
July  26,  1292  lbs.  Fair  Rio 
July  27,  1376  lbs.  Prime  Santos 
July  27,  2619  lbs.  Mocha  Rio 

34. 

May     1,  1762  lbs.  Java  Rio 
May    4,  3219  lbs.  Java  Santos 
May  24,  1620  lbs.  Mocha  Santos 
May  25,     692  lbs.  Good  Guatemala 

35. 

Jan      5,     672  lbs.  Prime  Santos 
Tan      7      792  lbs.  Low  Fair  Rio 
Jan      7,       86  lbs.  Ordinary  Santos 
Jan    10,  1218  lbs.  Mocha  Rio 
Jan."  10.  2319  lbs.  Java  Santos 

36. 

July  10,  1000  lbs.  of  each  grade  of  Rio 

9 


37. 

Nov.  3,  2500  lbs.  of  each  grade  of  Santos 

38. 

Nov.  8,  100  lbs.  of  Prime  Rio.  increasing  the  amount  for  each  succeeding 
grade  by  100  lbs. ;  E.  G..  200  lbs.  Good  Rio.  300  lbs.  Fair  Rio,  etc. 

39. 

March  1,  150  lbs.  of  the  Prime  Santos  increasing  the  amount  for  each  suc- 
ceeding grade  by   100  lbs. 

40. 

Purchase  250  lbs.  of  each  grade  not  costing  over  14c. 

41. 

The  Central  School  Base  Ball  Team  bought  the  following  articles  from  the 
F.  and  R.  Lazarus  Company : 

2  baseballs  f^  $1.10 
6  bats  rd  $0.35 
1   catcher's  mitt    ^i     $2.25 

3  fielder's  gloves  (a  $0.65 
1  catcher's  mask  @     $2.50 

Make  out  the  sales  slip  as  the  Sporting  Goods  Company  would  have  made 
it  out. 

Solution 

THE  F.  &  R.  LAZARUS  &  CO. 

Founded  1851 


For   Charge,    C.   O.    D.,    Approval   and   Transfer 

Name 

CENTRAL    SCHOOL    BASEBALL    TEAM 

Address 

Central  School 

Dept. 
46 

Sold   By 

Purchased    By 

F.  A.  GOOD.  Manager 

Dept. 
33 

Sold   By 

Kind    of    Sale 

Charge 

2 

Baseballs  .... 

$2 

20 

6 

Bats    

2 

10 

1 

Mitt    

2 

25 

3 

Gloves    . 

1 

9S 

1 

Mask    

2 

50 

$11 

00 

Identic 

ed 

Private    Packa 

ges    Er 

closed 

THIS  SUP  MUST   BE   RETURNED  IN   ORDER  TO    EXCHANGE   MERCHANDISE. 
Kindly    report    any    error   or   (liscourtesy    at    once    to    superintendent. 


42. 


B.   Lewis  bought  of  the   Middle  West  Produce  Co.: 

4  bu.  apples  @  $1.52 

3  crates  of  cantaloupes  (o;  ^2.65 

2  crates  peaches  (a  $2.75 

2  crates  grapefruit  (a  $4.30 
Make  out  the  sales  slip  which  accompanied  the  goods  on  delivery. 


43. 

B.  Lewis  sold  to  the  \'ernon  Hotel  Company : 
2  bu.  apples  (d:  $2.10 
2  bu.  apples  <§  $1.70 
2  crates  cantaloupes  (a  $3.20 
2  crates  peaches  (W  $3.25 
1  crate  grapefruit  @  $5.05 

Make  out  sales  slip  acconipanying  the  goods  on  delivery 


44. 

The   Central   Packing  Company  sold  to  Charles   Sowers  the   following  bill 
of  goods : 

720  lbs.  beef  (a  $8.25  per  cwt. 

615  lbs.  hogs  (a)  $10.25  per  cwt. 

243  lbs.  lamb  (S:  $9.50  per  cwt. 

150  lbs.  lard  @  $13.40  per  cwt. 

212  lbs.  turkeys  (a)  26c 
Make  out  a  sales  slip  for  this  sale. 


45. 

Prepare  the  sales  slip  sent  by  the  Dairy  Products  Company  to  L.  R.  Dale, 
for  the  following  purchase : 

400  lbs  creamery  butter  (a    30c 
150  lbs.  creamery  butter  (f?  31^20 
125  dozen  eggs  (n   32c 
30  lbs.  cheese  @  16^4 c 


46. 

Make  out  a  sales  slip  from  the  Oil  Supplv  Company  to  S.  M.  Collins  for 
315  gal.  gasoline  at  23c.  and  123  gal.  gasoline  at  28c. 


47. 

Mr.  Lee  stopped  at  a  filling  station  and  had  10  gallons  of  gasoline  put  in  the 
tank  of  his  car.     Make  out  a  sales  slip  for  this  sale  at  22c  per  gallon. 


48. 

The  Independent  Supply  Company  sold  20  doz.  bottles  of  pop  to  Ted  Gun- 
ther  at  25c  a  dozen.     Make  out  the  sales  slip. 


49. 

Mrs.  Lewis  sent  Tom  to  Wheeler's  Grocery  for  a  can  of  tomatoes  costing  12c, 
a  can  of  corn  at  15c,  25  pounds  of  sugar  costing  $1.98,  and  3  loaves  of  bread  at 
5c  a  loaf.  Make  out  a  sales  slip  such  as  the  grocer  would  send  over  with  the 
goods  when  they  are  delivered. 


Citizens  2320 


Filled    by 


Solution  No.   1. 

WHEELER'S 

Oak  and  Parsons  Avenue 


Bell  East  270 


Columbus,  O.,  August   10,   1916. 


Name 
Address 


MRS.  LEWIS 

1510  Bryden  Street. 


1 

1  Can  Tomatoes 

12 

2 

1  Can  Corn 

15 

3 

25  lbs.  Sugar 

1 

98 

4 

3  Bread 

15 

5 

6         1 

7 

8 

9 

10 

11 

Past  account 
Amount    of   hill 
Total 

7 
2 

90 
40 

10 

30 

— =) 

Note — The  grocery  slip  always  carries  "Past  Account"  and  "Total."  "Past 
Account"  is  =;ometimes  placed  at  the  top,  as  in  Solution  No.  2.  When  this  i^  d(inc  tlie 
amount  of  the  bill  for  that  day  is  not  included. 


Solution  No.  2. 

WHEELER'S 

Oak  and  Parsons  Avenue 


Citizens  2320 


Bell  East  270 


Filled    by 


Columbus,  O.,  August   10,   1916. 


Name 
Address 


MRS.  LEWIS, 

1510  Bryden  Street. 


- 

Past  Account 

7 

90 

2 

1   Can  Tomatoes 

12 

2 

1  Can  Corn 

15 

3 

25  lbs.  Sugar 

1 

98 

4 

3  Bread 

15 

5 

6 

7 

8 

9 

10 

11 

Total 

10 

30 

Using  form  No.  1.  make  out  sales  slips  for  each  day's  purchases,  carry- 
ing forward  the  "past  account." 

50. 

Aug.  12;  yeast,  2c;  Karo  syrup,  12c;  paraffin,  15o. 

51. 

Aug.   14;  1  lb.  butter,  38c;  6  oranges.  25c;  head  lettuce.  15c;  2  lbs.  toma- 
toes, 10c. 

52. 

Aug.   15;  1  bread,  5c;   1  pufifed  rice,   15c;  1   lb.  crackers,   10c. 


53. 

Aug.   16;   1   head  lettuce,   10c;   1  bread,  5c:  peaches,   15c. 

54. 

Aug.  19;  1  lb.  lard,  18c;  1  lb.  butter,  38c;  1  corn  starch,  10c;  >^  cake,  50c. 


55. 
Aug.  20 ;  1  11).  coffee,  38c ;  1  bread,  5c. 

56. 

Aug.  22;  Yi  lb.  cheese,  16c;  1  puffed  rice,  15c;  Argo  Starch,  5c. 

57. 

Aug.  24 ;  1  bread.  5c ;  W'erk  soap,  25c ;  Yi  doz.  oranges,  25c ;  lettuce.  5c. 

58. 

Aug.  25;  Yi  pk.  potatoes,  23c;  cookies,  10c;  1  sack  Pills,  flour,  $1.10;  1  qt. 
maple  syrup,  50c. 


Aug.  27 ;  1  box  bacon,  40c. 


59. 


60. 


Aug.  29;  1  bread,  5c;  1  lb.  butter,  38c;  Quaker  ham,  40c;  J4  lb.  N.  Y. 
cheese.  16c;  P.  &  G.  soap,  5c. 

61. 

Make  out  \Vheeler's  bill  to  Mrs.  Lewis  on  vSept.  1.  Since  the  items  have 
been  shown  in  the  sales  slips,  this  statement  will  give  only  the  amount  of  the  bill. 

Note  1.  If  form  number  2  had  been  used  for  the  sales  slip,  the  statement 
sent  on  Sept.  1  would  show  the  daily  total  for  each  day.     Make  out  such  a  bill 

2.  When  a  bill  is  paid,  it  is  receipted  by  writing  or  stamping  "Received 
Payment"  across  its  face,  with  the  day  of  payment,  signed  by  the  individual  re- 
ceiving the  payment. 

3.  Payment    is   usually   made   in   currency   or   check. 

62. 

If  Mrs.  Lewis  paid  the  above  bill  to  James  Avery,  the  cashier  at  \\'heeler's, 
write  the  receipt  as  James  Avery  would  write  it. 


August  10,  1916,  the  Cincinnati  markets  show  the  following  quotations: 


PROVISIONS. 

LARD — Per  lb.  :  Prime  steam  in  tcs.  12.90 
al3c,    family    steam   in    tcs.    14al4.30c. 

PORK— Per  bbl.  :  Mess  $24.S0a25,  clear 
$26a26.50,  clear  family  $26.50a27,  jowl  bean 
$22.50a23. 

DRY  SALTED  MEATS— Per  lb.:  Short 
clear  14.>4al5^c,  e.xtra  short  clear  14'4al5J-ic, 
short    ribs    H^aH-Hc,    bellies    16}^al7c. 

SMOKED  MEATS— Per  lb.:  Short  clear 
16al6J^c,  extra  short  clear  15  5/ial6c,  short 
ribs    15^al6c,    bellies    1734al8%c. 

SUGAR  CURED  MEATS— Per  lb.:  Hams 
2OV2C,  picnic  15alS^c,  breakfast  bacon  29;4 
a30V2C,  shoulders  in  packages  IJalS^jc,  New 
•York   cut    15/ial6c,  dried   beef  hams  29!/.a30c. 

SWEET  PICKLED  MEATS— Per  lb.: 
Hams  in  tcs.  16'/2al7c,  picnic  12;^al3c,  bel- 
lies 16;'ial7^c,  shoulders  13J/jal4c,  New  York 
cut  do    14al4^ic. 

GREEN  MEATS— Loose,  per  lb.:  Hams 
16^al7J4c,  picnic  12J^al3c,  shoulders  MVi 
al3c,  short  rib  sides  13al3K'C,  extra  short 
clear  sides  UaU.'iC,  bellies  light  \%y^:\\'iV^c, 
heavy    ]7al8c. 

GROCERIES. 

Coffee :  Rio.     Santos. 

Prime    14f^  17f4 

Good   WVi  16li 

Eair   14 -4  15?^ 

Low    fair    \i%  15^ 

Good   ordinary    13)i  141ii 


Ordinary     MVi  1414 

Low  ordinary    127^  13^ 

I'ancy  Guatemala   19^^ 

Good    Guatemala    17^ 

Mocha    29  30 

Java    28  30 

SUGAR— Per  100  lbs:  Cut  loaf  $8.85,  pow- 
dered $7.S5,  cubes  $8.05,  granulated  $7.65,  con- 
fectioners' A  $7.75,  off  A  $7.15a7.35,  white  ex- 
tra C  $6.95a7.05,  extra  C  $6.85.  New  Orleans 
white  clarified  $6.85a6.95,  do  yellow  $6.20a6.60. 

TEAS— Oolong  35a75c,  Souchong  40a85c, 
English  breakfast  40ca$1.10,  Japan  50a80c, 
gunpowder   40a85c. 

RICE— Per  lb.  :  Broken  heads  4a4-)4c,  extra 
fancy  65/ja7c,  fancy  5J4a5)4C,  second  head 
4Via5c,   Japan   4)4a5^4C,  T31ue    Rose   5!4a5}ic. 

HEANS — Navy  per  bu.  $9.40a9.50,  prime 
marrowfat  per  bu  $9.50a9.75,  kidney  red  per 
bu  $9a9.25,   lima  $7a7.25   per   100  lbs. 

MOLASSES — Choice  to  fancy  open  kettle 
pci-  gal  58a65c,  prime  to  strict  open  kettle  45 
aSOc,  fair  to  prime  36a42c,  choice  to  fancy 
centrifugals  27a34c,  prime  to  strict  centrifu- 
g.ils   25a27c,    common    centrifugals   23a-5c. 

inCESWAX— Dealers   pay   27c  per  lb. 

S.M<T— Ohio  per  bbl  (280  lbs)  $1.05.  stan- 
il.ird  granulated  $1.10.  do  medium,  $1.15,  table 
$1.65. 

PEANUTS— Per  lb.:  Jumbo  fancy  hand- 
picked  yyiaV^c,  fancy  hand-picked  5^ia6i'4C, 
.  Ii.iiic  hand-picked  4>'4a5;4c. 


BAGS— Wheat  burlaps  9al5c,  corn  10;il5c, 
oats  9al5c,  cotton  seamless  second-hand  10a 
18c,    do   new    18a20c,    wool,    45c. 

BROOM  CORN— There  are  hardly  any  of- 
ferings at  all  and  there  is  a  good  demand 
noted,  with  the  following  range  of  4'/y.\/y>c 
covering  the  various  states  and  qualities. 
Crooked  and  poor  seedy  stock,  while  not  very 
actively    sought,    will    sell    only    at    a    reduced 

^  BROOMS — Per  doz  :   Common  $1.50a2,  par- 
lor  $2.50,    steamboat    $4.50,    stable   $6.50. 

DRIED  FRUITS— Per  lb:  Apples:  Cali- 
fornia country  sun-dried  2a4c,  evaporated  6a 
7c.  Peaches:  California  standard  to  choice 
AyiaSyic,  California  fancy  6a7c.  Apricots: 
California  choice  lO'^allc,  California  fancy 
12al3c.  Prunes:  California  S^^alOc.  Raisms : 
California  seeded  7a8c,  loose  Muscatels  6'/, 
a7/.c. 

FARM    AND    DAIRY    PRODUCTS. 
(Produce   Exchange   Quotations.) 

BUTTER— Whole  milk  extra  3254c,  central- 
ized extra  30c,  centralized  firsts  26K'C.  cen- 
tralized seconds  23 '/2C,  dairy  fancy  roll  23c, 
packing  stock  No.    1  21i^c,  packing  stock   Ao. 

CHEESE — New  York  dairies  new  20c,  do 
flats  new  19c,  do  chedders  new  19c,  do  twins 
new  19c,  Michigan  flats  18'/,c,  Ohio  flats  ISyic, 
longhorns  18c,  Wisconsin  daisies  19c,  do  flats 
18c,  do  twins  18c,  imported  Schweitzer  No.  1 
40a42c,  extra  No.  1  Schweitzer  loaf  new 
3Sc,  brick  19c,  Schweitzer  block  old  28c, 
Schweitzer  block  new  24c,  Wisconsin  Lim- 
burger  17;4c,  New  York  Limburger  l&Vzc, 
old  sharp  New  York  and  Wisconsin  flats  21c. 

EGGS— Prime  firsts  (loss  off)  24c,  firsts 
22i<c,   ordinary  firsts  20>'2C.   seconds   18 '^c 

LIVE  POULTRY — Fowls  4  lbs  and  over 
16c,  do  under  4  lbs  16c,  fryers  2'/^  lbs.  and 
over  20c,  roosters  12c,  broilers  2  lbs  and 
over  22c,  do  under  2  lbs  19a21c,  spring  <\urU^ 
white  2  to  3  lbs  15c,  do  over  3  lbs  15c, 
ducks  white  3  lbs  and  over  14c,  do  white 
under  3  lbs  12c  ducks  colored  12c,  hen  tur- 
keys 8  lbs  and  over  21c,  turkey  toms  10  lbs 
and  over  21c,  turkeys  crooked  lireasted  lOilJc, 
cull  turkeys  6a8c,  geese  full  feathered  <  b  imo 
10c,  geese  medium  9c,  geese  common  8c, 
guineas  per  doz  $4,  pigeons  old  per  doz  $1.50. 
SQUABS — One  lb  and  over  are  quoted  at  $3 
per   doz,    2    lbs    60c   per   doz. 

LAMBS— Spring    8a  10c,     yearling    7a9.-. 
CALVES— Select    weight    12c,    choice    10', .;i 
IIV2C,   common    6a  10c. 

FRUIT  AND  VEGETABLES. 
CALIFORNIA  AND  WESTERN  FRUITS 
— Plums:  \'ixon  per  box  $2a2.50,  Hungarian 
per  box  $2.25a2.50.  Tragedy  per  box  $2.50n 
2.75.  Pears:  California  Bartletts  per  half  box 
$1.50,   California  per  40-11).   box  $3.25a3.50. 

NEW  APPLES— Maiden  Blush  per  bbl  $3). 
$4.50.  Per  Royal  per  bbl  $3.25a3.50,  Early 
Harvest  per  bbl  $2.75a3,  do  per  hamper  $la 
$1.25,  new  Astrican  per  hamper  $lal.25.  Trans- 
parent  per  hamper  $1.25al.50. 

BANANAS — Jumbo     bunches     extra     large 


$1.75a2.25,  medium  bunches  $1.35al.60. 

CRABAPPLES— Per  bu  $lal.25. 
CANTALOUPES— California  Turlock  stand- 
ard crate  $1.25a2,  California  Turlock  soft  $1, 
California  flat  crates  75a85c,  Indiana  stand- 
ard crate  $lal.50,  Indiana  flat  crates  35a60c, 
Indiana  baskets  25a40c,  Honey  Dew  melons 
per  crate  $2a2.50. 

CURRANTS— Per    24-qt.    crate    $2a2.2S. 

LEMONS— California  per  box  $7.50a8, 
Messina  per  box  $7a7.2S,  limes  Florida  per 
crate  $3.25a3.75. 

HUCKLEBERRIES— Virginia  12-15-lb  bas- 
ket  75c,   Virginia   20-lb   basket   $lal.25. 

ORANGES— Valencia  per  box  $3.25a4.25. 

PEACHES — Elberta  extra  fancy  per  crate 
$3a3.25,  Elberta  per  crate  $3a3.25,  Elberta 
oer  bu  $3a3.25,  homegrown  Carmen  per  bu 
$2.50a2.75. 

PLUMS — Damson    per    basket    40a45c. 

PEARS— Sugar  per  bu  $lal.25,  alligator 
|)er   doz    $1.50al.75. 

PINEAPPLES— Sizes  18s,  24s  and  30s  $3 
;i3.25,    sizes    36s,    42s   and   48s   $1.75a2.7S. 

CABBAGE — Homegrown  per  bbl  $1.25a 
1.50. 

CARROTS— Homegrown  per  bu  $lal.25, 
homegrown    per   doz   20c. 

CLCUMBERS — Homegrown  per  doz  30a 
35c,    Eastern   per  hamper   75ca$l. 

CAl'LIFLOWER— Homegrown    per    bu    $1 

CELERY— Michigan    per    crate    25a30c. 

EGG  PL.^NTS- Florida  per  crate  $1.7Sa2, 
\evv    Orleans   per   bbl   $4a5. 

GARLIC— Per  lb  9al0c,  new  per  lb   7c. 

HORSERADISH— Per  lb   7c. 

LETTUCE— New  York  head  lettuce  per 
crate     $1.35al.50,     homegrown     curly     per     lb 

ONIONS — Homegrown  yellow  per  bu  $1.25 
a  1.50,  homegrown  white  per  bu  $1.50al.75, 
Louisiana  80-lb  sacks  $2.50a2.75,  Louisville 
per  bbl  $3.7Sa4,  Crystal  white  per  crate  $2 
.i2.25,  leek  per  doz  40a60c,  Spanish  per  crate 
$1.50al.75. 

POTATOES — Eastern  Cobblers  per  bbl 
$3.50,  Triumphs  per  bbl  $3.50,  homegrown  per 
bbl  $3a3.50.  Early  Ohio  and  Triumphs  m  bull- 
per  I1U  on  track  $1.10al.l5,  Idaho  bakers  per 
box    $lal.25. 

PEPPERS— Florida  per  bulk  crate  $lal.l5, 
Tennessee   per   hamper   $1. 

PEAS— New    York   per  bu   $1.50al.7S. 

PARSLEY— Per    doz    bunches    25a30c. 

PICKLES— Per    100    35a40c. 

OKRA— Per  crate  $1.7Sa2. 

SUGAR  CORN — Homegrown  per  doz  15a 
20c. 

SWEET  POTATOES— Mississippi  per  ham- 
per  $1.25al.50,    Virginia    Sweets   per   bbl    $4. 

SOUASH— Florida    per    crate    $2a2.25. 

TURNIPS-Per    lb    $2. 

WATERMELONS— $25  to  $40  per  100. 

STRING  BEANS — Homegrown  per  bu  $2 
a2.25,    wax    per    hamper    $1.50a2. 

TOMATOES— Homegrown   per  bu   40a75c. 

RADISHES — Homegrown  long  per  doz  15 
a20c. 


Note  1.  All  bbls.  are  to  be  considered  as  50  lbs.  or  4  bu.  unless  otherwise 
quoted  and  all  boxes  as  25  lbs.  or  2  bu.  each.  When  a  range  of  prices  is  quoted 
use  the  lowest  price. 

2.  Secure  today's  market  quotations  from  your  local  paper  and  compare 
them  with  the  quotations  given  above. 

Make  out  bills  and  extend  footings: 

63. 

75  lbs.  prime  steam  lard 
62  lbs.  sugar  cured  ham 
17  lbs.  breakfast  bacon 
82  lbs.  sweet  pickled  shoulders 
128  lbs.  green  hams 


15 


64. 

128  lbs.  priire  steam  lard 
614  lbs.  mess  pork 
225  lbs.  prime  Rio  cofifee 
768  lbs.  fair  Santos  coffee 
268  lbs.  cut  loaf  sugar 
65  lbs.  Oolong  tea 

65. 

65  lbs.  extra  fancy  rice 
122  lbs.  fancy  rice 

3  bu.  navy  beans 
16  gal.  choice  molasses 
14  lbs.  beeswax 

3  bbls.  Ohio  salt 

66. 

248  lbs.  granulated  sugar 
1246  lbs.  ordinary  Santos  tea 
250  lbs.  prime  steam  lard 
364  lbs.  Japan  tea 
758  lbs.  fancy  rice 

67. 

3y2   bn.  kidney  red  beans 

250  lbs.  lima  beans 

175  lbs.  Jumbo  fancy  hand  picked  "peanuts 

75  wheat  burlap  bags 
2^4   doz.  common  brooms 

75  parlor  brooms 

68. 

160  lbs.  second  liead  rice 

75  lbs.  Blue  Rose  rice 
570  lbs.  Mocha  Rio 

3  bbls.  standard  granulated  salt 
175  lbs.  California  sun-dried  apples 
68  lbs.  evaporated  apples 

69. 

27  bu.  Maiden  Blush  apples 

76  doz.  prime  first  eggs 
68  doz.  firsts  eggs 

63  5-lb.  fowls  . 
248  ]l)s.  spring  lamb 

70. 

Zy^doz.  l'/>-lb.  sc|ua])s 
268  lbs.  .select  weight  calves 
57  bu.  crabapples 

3  bunches  Jumbo  extra  large  Imnclios  liananns 

4  crates  California  Turlock  cantaloupes 

71. 

2^   crates  currants 
3       boxes  California  kMrons 
3       20-lb.  baskets  huckleberries 
61     boxes  oranges 


72. 


12 


crates  Elberta  peaches  (extra  fancy) 
72       lbs.  low  fair  Rio  cofifee 
128       lbs.  Japan  rice 
17^/2  lbs.  beeswax 
16^  doz.  parlor  brooms 

73. 

23/2  bbl.  cabbage 

3y2  bu.  carrots 

64  home-grown  cucumbers 

16  crates  Michigan  celery 

124  lbs.  California  dried  prunes. 

74. 

73/2  lb.  horseradish 

2  crates  Florida  eggplant 

163^-2  bu.  homegrown  yellow  onions 

78  bu.  Eastern  Cobblers  potatoes 

648  lbs.  ordinary  Santos  coffee 

45  lbs.  breakfast  bacon  (sugar  cured) 

75. 

72  doz.  radishes 

175  watermellons 

214  bu.  homegrown  string  beans 

75  bu.  turnips 

22  ears  hoiregrown  sugar  corn 

76. 

175       pickles 

31^2   crates  Florida  peppers 
2^4   crates  Florida  squash 

15  hampers  Virginia  sweet  potatoes 

75       lbs.  California  choice  apricots  (dried  fruits) 

77. 

15  boxes  Mxon  California  plums 

28  bbls.  pound  royal  apples 

72  lbs.  extra  fancy  rice 

18  lbs.  Japan  rice 

62  lbs.  fancy  Guatemala  coffee 

78. 

128  lbs.  Michigan  Flats  cheese 

214  lbs.  whole  milk  butter 

320  lbs.  packing  stock  No.  1  butter 

16  doz.  firsts  eggs 
128  lbs.  spring  lamb 

79. 

3  Hampers  Tennessee  peppers 

17  brooms  (steamboat) 

13  lbs.  Blue  Rose  rice 

21  lbs.  Fair  Rio  coffee 

12  lbs.  short  clear  drv  salted  meat 


17 


80. 


Find  the  cost  of   12  lbs.  each  of  all  grades  of  sugar-cured  meats. 


81. 

Find  the  cost  of  28  lbs.  each  of  all  j^rades  of 


green  meats. 


82. 

What  will  2,000  lbs.  of  each  grade  of  sugar  cost? 

83. 

Frank  Williams  starts  in  the  grocery  business.     He  orders  from  the  Cap- 
itol City  Retail  Company: 

30  lbs.  of  each  grade  of  butter 

15  lbs.  Ohio  flats  cheese 

12  doz.  firsts  eggs 

15  33^-lb.  live  poultry 

2  boxes  Hungarian  plums 

2  bbls.  early  Harvest  apples 

2  medium  bunches  bananas 

The  quotations  on  grain  are  listed  below : 


Wheat— No.    2   red   winter   $1.38al.40.    No.    3 
$1.33al.38.     No.     4    $1.0Sal.26. 

Corn   quotations: 

No.  2    vellow 86     a86^ 

No.  6   white 78     a82 

No.  3    yellow 8S>^a86 

No.  2   white 86     a87 

No.  3    white 85     a86 

No.  4   white 83     a84 

No.  S   white 82     a83 

No.  4    yellow 83     a84 

No.  5    yellow 82     a83 

No.  6    yellow 78     a82 

No.  2  mixed 85  J^  a86 

No.  3  mixed 85     a85 1/4 

No.  4  mixed 825^a835^ 

No.  5  mixed 81^a82^ 

No.  6  mixed 78     a82 


Ear  Corn — White  85a87c,  yellow  86a88c, 
mixed    85a87c. 

Oats— No.  2  white  44a45c,  standard  white 
43J/^a44c.  No.  3  white  ASyic.  No.  4  white 
42a42i/^c.  No.  2  mixed  42a42i4c.  No.  3 
mixed   41a42c.     No.   4   mi.xed    39a40c. 

Rye— No.  2  $1.10al.l2,  No.  3  $1.03al.06. 
No.    4    90ca$1.02. 

Barley — No  2  winter  70a75c,  No.  3  win- 
ter 65a70c,  No.  4  winter  60a65c,  No.  1 
feeding  60a75c,  No.  2  spring  84a88c,  No.  3 
spring  80a84c,   No.  4  spring  7Sa80c. 

Malt — Spring  barley  93ca$1.02,  lower  grade 
91a93c. 

Hay — No.  1  timothy  $15.  No.  2  timothy 
$13,  No.  3  timothy  $11,  No.  1  clover  mixed 
$13.50,  No.  2  clover  mixed  $11.50.  No.  1 
clover  $11,  No.  2  clover  $9.  oats  str:iw  $7a 
$7.50,   wheat   straw  $7a7.50,   rye   straw   $8.S0a9. 


Make  out  and  extend  the  footings  in  the  following  problems : 

(Use  the  lowest  i)rice  when  two  are  given.) 

84. 

20.500  bu  of  No.  2  red  wheat 

15,000  bu.  of  No.  3  red  wheat 

4,690  bu.  of  No.  4  red  wheat 

6,596  bu.  of  No.  3  red  wheat 

7,254  bu.  of  No.  2  red  wheat 

85. 

5,369  bu.  of  No.  2  white  corn 

3,654  bu.  of  No.  3  white  corn 

5,100  bu.  of  No.  4  white  corn 

656  bu.  of  No.  5  white  corn 

1,763  bu.  of  No.  6  white  corn 


86. 

1,356  bu.  of   No.  2  yellow  corn 

6,296  bu.  of  No.  3  yellow  corn 

5,617  bu.  of   No.  4  yellow  corn 

1,659  bu.  of  No.  5  yellow  corn 

1,369  bu.  of  No.  6  yellow  corn 

18 


87. 

3,697  bu. 

of  No. 

2  mixed 

corn 

1,697  bu. 

of  No. 

3  mixed 

corn 

5,316  bu. 

of  No. 

4  mixed 

corn 

4,619  bu. 

of  No. 

5  mixed 

corn 

7,619  bu. 

of  No. 

6  mLxed 

corn 

88. 

Find  the  cost  of  5,560  bu.  of  each  grades  of  ear  corn. 


89. 

236  bu. 

No.  2  white  oats 

563  bu. 

Standard  white  oats 

1219  bu. 

No.  3  white  oats 

2116  bu. 

No.  4  white  oats 

590  bu. 

No.  2  mixed  oats 

3116  bu. 

No.  3  mixed  oats 

1619  bu. 

No.  4  mixed  oats 

90. 

5763  bu.  No.  2  rve 
2116  bu.  No.  3  rye 
5112  bu.  No.  4  rye 
1319  bu.  No.  3  white  oats 
654  bu.  No.  6  w^hite  corn 

91. 

A  broker  bought   10,550  bu.  of  each  grade  of  barley.     Find  the  cost. 

92. 

The  broker  in  problem  91  sold  the  barley  at  an  increase  of  3>4c  per  bu. 
Make  out  the  bill  and  find  the  gain. 

93. 

A  grain  dealer  bought  2136  bu.  of  spring  barley,  also  7169  bu.  of  lower 
grade  malt,  8639  bu.  of  ear  corn  white.  6319  bu.  of  No.  2  white  oats  at  au 
advance  on   each   of    Ij/c  over  the   market   price.     Find   the  cost. 

94. 

Find  the  cost  of  the   following  purchases : 

235  Tons  No.  1  Timothy  hay 
119  Tons  No.  2  Timothy  hay 
264  Tons  No.  3  Timothv  hay 

569  Tons  No.   1   Clover  mixed 
1316  Tons  of  No.  2  Clover  mixed 

95. 

Make  out  a  statement  for  the  following : 
6916  Tons  No.  1  Clover 
1650  Tons  No.  2  Clover 

570  Tons  Oats  Straw 
650  Tons  Wheat  Straw 
760  Tons  Rye  Straw 

96. 

A  broker  bought  for  his  principal : 
1659  bu.  of  No.  3  red  winter  wheat  at  l^'C  below  the  market  price 
2369  bu.  of  No.  3  yellow  corn  at  the  market  price 
6539  bu.  of  yellow  ear  corn  at  2j-^c  above  the  market  price 
1780  bu.  of  No.  3  white  oats  and  3560  of  No.  3  winter  barley  at  a  reduction  of 

y2C  from  the  market  price. 

19 


97. 

Use  aliquot  parts  in  making  extensions  in  the  following  bills: 

24  yds.  of  cloth  at  123^0 
60  yds.  of  cloth  at  SSM^c 
36  yds.  of  cloth  at  SVfsc 

160  yds.  of  cloth  at  6^4c 

98. 

54  yds.  of  cotton  goods  at  614c 
72  yds.  of  cotton  goods  at  12;'iC 

144  yds.  of  cotton  goods  at  662.3c 
60  yds.  of  cotton  goods  at  40c 

125  yds.  of  cotton  goods  at  $1.25 

99. 

36  bn.  of  wheat  at  $1.25 
56  bu.  of  wheat  at  $1.50 
124  bu.  of  corn  at  75c 

25  bu.  of  corn  at  88c 
160  bu.  of  seed  at  $12.50 

100. 

120  acres  at  $125 
80  acres  at  $150 
720  acres  at  $11 2i/< 
600  acres  at  $10654 

101. 

112  yds.  of  cloth  at  12^4 c 
96  yds.  of  cloth  at  6^4c 
54  yds.  of  cloth  at  10c 
18  yds.  of  cloth  at  15c 
64  yds.  of  cloth  at  Uy.c 

102. 

6V2  yds.  of  cotton  goods  at  6j{.c 
650  yds.  of  cotton  goods  at  $0,065 
5J/2  yds.  of  cotton  goods  at  55^c 
8^/2  yds.  of  cotton  goods  at  7^c 
6%  yds.  of  cotton  goods  at  6}4 

103. 

24  lbs.  of  fruit  at  162/ic 
92  lbs.  at  50c 
64  lbs.  at  $1.75 
66  lbs.  at  33V^c 
16  lbs.  at  634c 

104. 

12  yds.  of  cloth  at  13'f.c 

50  yds.  of  cloth  at  62c 

80  yds.  of  cloth  at  12K>c 
160  yds.  of  cloth  at  75c 
300  yds.  of  cloth  at  $1.25 

20 


105. 

64  bu.  of  grain  at  70c 
16  bu.  of  grain  at  dZ^ic 

600  bu.  of  grain  at  662^^c 
1000  bu.  of  grain  at  $1.03-; <^ 

640  bu.  of  grain  at  $1.12j^ 


TO  THE  TEACHER: 

1.  A  multitude  of  combinations  of  problems  can  be  given  from  the  differ 
quotations  listed  in  this  book,  if  you  find  the  number  provided  inadequate  for 
the  time  allotted  to  this  work.  These  problems  furnish  excellent  drill  work  oi; 
fractions,  multiplication,  addition  and  other  essential  subjects.  See  to  it  thai 
all  work  done  is  done  in  ink.  Place  a  penalty  on  erasures.  Pupils  should  bt 
trained  to  do  work  right  the  first  time. 

2.  At  the  very  beginning  of  the  bookkeeping  work  require  the  pupil 
to  write  the  names  of  the  various  books  at  the  top  of  the  first  page,  e.  g.  Bills 
and  Accounts  should  be  written  at  the  top  of  page  45,  Cash  book  at  the  top 
of  page  52,  etc. 

3.  The  pages  upon  which  the  pupil  makes  his  entries  are  perforated. 
These  pages  must  be  removed  from  the  book  at  the  end  of  each  school  term. 
Do  not  neglect  this. 

4.  See  to  it  that  all  entries  are  made  carefully  and  that  all  books  are  kept 
as  neatly  as  possible. 

5  Special  exercises  in  Bookman's  Business  Arithmetic  can  be  put  up 
in  Bill  form  and  extensions  made ;  e.  g  ,  Group  4,  Page  34,  Problem  7-8-9 ; 
Page  50,  Problem  31-32--33;  Groups  2  and  3.  Pages  84-86,  etc. 


First  Steps  in  Bookkeeping 


DEFINITIONS. 

Cash.  By  cash  we  mean  in  bookkeeping,  gold,  silver,  paper  money,  and 
any  kind  of  paper  that  can  l^e  immediately  converted  into  currency  or 
deposited  at  bank  to  our  credit,  such  as  checks,  bank  drafts,  postal  money 
orders,  etc. 

Cash  Receipts.  Any  cash  received  for  goods  sold  or  in  payment  of 
accounts,  or  in  any  way  coming  into  the  business  is  known  as  cash  receipts. 

Cash  payments.  Any  cash  paid  out  for  goods  purchased  or  in  payment 
of  accounts  or  expenses,  or  for  any  other  purpose  is  known  as  cash  payments. 

Cash  balance.  The  difference  between  the  cash  receipts  and  the  cash 
payments  is  known  as  the  cash  balance. 

THE  CASH  BOOK. 

The  cash  book  is  a  form  of  record  showing  the  cash  received,  the  cash  paid 
out.  and  the  balance  of  cash  on  hand. 

A  double  page  is  generally  used,  the  left  hand  page  taking  the  cash 
received,  and  the  right  hand  page  the  cash  paid  out.  (See  illustration.)  By 
adding  the  cash  receipts  and  the  cash  payments,  and  subtracting  the  cash 
paid  out  from  the  cash  received,  Ave  arrive  at  the  balance  of  cash  on  hand, 
known  as  the  cash  balance. 

The  cash  book  may  be  balanced  and  ruled  at  the  end  of  each  day's  busi- 
ness, or  it  may  be  ruled  at  less  frequent  intervals,  to  suit  the  convenience  of 
the  business.  To  rule  the  cash  book  we  find  the  cash  balance  as  stated 
above,  and  then  write  this  balance,  usually  in  red  ink,  on  the  line  immediately 
under  the  last  entry  on  the  right  hand  or  cash  payments  side.    This  will  make 


CASH  RECEIPTS. 


L.F. 

1916 

1 

April 

1 

Henry    Pierce,    Loan, 

5 

00 

2 

Sales,   100  papers. 

1 

31 

3 

Sales.     75       " 

95 

4 

Sales,     90       " 

1 

17 

5 

Sales,  125       " 

1 

51 

6 

Sales.  150      " 

Total   Receipts, 

1 

90 

11 

84 

1 

11 

84 

April 

6 

Balance, 

8 

40 

22 


the  totals  of  the  two  sides  equal  as  they  should  be.  The  lines  are  then  drawn 
as  shown  in  the  illustration  and  the  equal  footings  inked  in  on  each  side.  After 
this  is  done,  the  cash  balance  should  be  brought  down  on  the  left  hand  side  on 
the  first  line  under  the  ruling. 

When  beginning  a  business  with  a  cash  balance  on  hand,  the  balance  is 
always  written  as  the  first  entry  on  the  left  hand  or  cash  receipts  side. 

Space  is  always  provided  on  each  side  of  the  cash  book  in  which  to  write 
the  date  of  the  transaction,  what  the  cash  is  received  or  paid  out  for,  and  such 
explanation  as  is  necessary  to  make  a  complete  history  of  the  transaction. 

Study  the  following  illustration  carefully  by  observing  how  each  trans- 
action is  entered  in  the  cash  book,  and  how  the  cash  book  is  balanced  and 
ruled  and  the  balance  brought  down. 


Illustration. 

Memoranda  of  Transactions. 

Apr.   1.     George  Pierce  borrowed  S5.00  from  his  father,  Henry  Pierce, 

with   Avhich   to   start  a   newspaper   business. 
Apr.  2.     He  bought  100  papers,  paying  cash  for  same $  .60 

2.  He  sold  100  papers  for  cash 1.31 

3.  He  bought  75  papers,  paying  cash 45 

3.  He  sold  75  papers  for  cash 95 

4.  He  bought  90  papers,  paying  cash 54 

4.  He  sold  90  papers  for  cash 1.17 

5.  He  bought  125  papers,  paying  cash 75 

5.  He  sold  125  papers  for  cash 1.51 

6.  He  bought  150  papers,  paying  cash ,90 

6.  He  sold  150  papers  for  cash 1.90 

6.  He  paid  his  brother  for  helping  to  sell  papers 20 

What  is  his  cash  balance? 


1916 
April 


CASH  PAYMENTS. 


LF. 


Purchases  100  papers, 
Purchases     75 
Purchases     90       " 
Purchases  125       " 
Purchases  150       " 
Expense  paid  help, 

Total   Payments, 
Balance, 


84 


23 


May 

1. 

1. 

1. 

2. 

2. 

3. 

3. 

4. 

4. 

4. 

Set  up  the  following  problems  in  cash  book  form  observing  the  form 
given  above,  balance  and  rule  the  cash  book  and  bring  the  balance  down.  Also 
ascertain   the  net  profit   where  called  for. 

Begin  the  first  problem  at  the  top  of  page  52.  Drop  down  tw(j  lines 
and  begin  the  second  problem. 

1 

George  Smith  borrows  $10.00  from  his  father,  Elmer  Smith. 

Bought  100  papers  for  $0.50  cash 

Sold   100  papers  for  $1.25 

Bought  75  papers  for  $.38 

Sold  7':^  papers  for  $1.02 

Bought   120  papers  for  $.60 

Sold  120  papers  for  $1.58 

Bought  200  papers  for  $1.00 

Sold  200  papers  for  $2.71 

Paid  for  help  in  selling,  $.38 

What  is  the  profit? 

2 
May  1.     A  boy  has  a  balance  of  $20.00  on  hand 

"     1.     He  buys  40  bu.  of  apples,  40c  per  bu. 

"     2.     Sells  5  bu.  at  60c  per  bushel 

"     3.     Sells  14  pks.  at  20c  per  pk. 

"     4.     Sells  IS  pks.  at  22j/c  per  pk. 

"     5.     Sells  20  bu.  at  65c' per  bu 

"     6.     Sells  7  bu.  at  50c  per  bu. 

What  was   his  profit  on   the  apples? 

3 
Allowance. 

A  girl  receives  $5.00  from  her  father 
June   1.     Spends  50c  for  ribbon 

"     2.     Spends  30c  for  candy  and  ice  cream 

"     3.     Spends  $2.00  for  shoes 

"     4.     Spends  $1.00  for  toys  for  a  little  brother. 

"     4.     Spends  50c  for  small  toilet  articles 

"     5.     Receives  $2.00  from  her  father 

4 

Apr.     1.  A  boy  borrows  $5.00  from   his   father   with   which   to   start   a 
garden. 

2.  He  buys  a  spade,  hoe  and  rake,  paying  cash,  $2.00 

"        5.  He  buys  garden  seeds  amounting  to  48c  for  cash 

"      10.  He  buys  some  wire  netting  to  enclose  parts  of  garden,  for  $1.85 

May  20.  He  sells  vegetables  amounting  to  $2.17 

"      24.  Sales  are  $1.88 

"      27.  Sales  are  $3.71 

June     1.  Sales  are  $4.12 

"      10.  Sales  are  $2.06 

"      12.  He  pays  back  the  $5.00  which  he  borrowed  from  his  father 

What  was  his  profit? 

24 


Mar. 

1. 

" 

2. 

" 

2_ 

" 

3. 

June 

1. 

Sept. 
Oct. 

1. 
1. 

" 

1. 

Nov. 

1. 

" 

2. 

A  boy  borrows  $15.00  from  his  brother  to  l)uy  chickens 

He  buys  poultry  netting  costing  $2.70 

Other  items  for  the  chicken  park  cost  $1.75 

He  buys  a  pen  of  eight  chickens  for  $9.00 

Sales  of  eggs  to  date  amount  to  $2.22 

Sales  of  eggs  from  June  1,  amount  to  $1.84 

Young  chickens  sold  amount  to  $15.75 

Chicken  feed  to  date  has  cost  $6.87 

He  sold  the  remaining  chickens  for  $10.58 

He  pays  back  the  $15.00  borrowed  from  his  brother 

What  is  his  profit? 

6 

1915. 

Nov.   1.     A.  C.  Smith  has  on  hand  $1,000 

2.  He  buys  15  head  of  cattle  at  $50.  per  head 

"       3.  He  buys  400  bu.  of  corn  for  feed  at  60c  per  bu. 

3.  He  buys  5  ton  of  hay  at  $12.00  per  ton 
■"  4.  He  buys  150  bu.  of  oats  at  35c  per  bu. 
"       4.  He  pays  for  grinding  feed,  $8.00 

1916. 

Mar.   1.  He  sells  10  head  of  cattle  at  $90.00  apiece 

Apr.   1.  He  sells  5  head  of  cattle  at  $100.00  apiece 

1.  He  pays  for  help  in  feeding  to  date,  $30.00 

What  is  his  profit  or  loss  on  the  cattle,  all  the  feed  having  been  used  up 


A  boy  has  a  cash  balance  of  $50.00 

He  rents  two  acres  of  land,  paying  cash  in  advance,  $20.00 
He  pays  for  plowing  and  harrowing,  $5.00 
He  pays  for  help  in  cultivating.  $4.00 
He  pays  for  help  in  cultivating,  $4.00 
He  sells  produce  for  cash,  $35.00 
He  sells-  produce  for  cash,  $40.00 
He  pays  for  help,  $5.00 
He  sells  produce  for  cash,  $38.54 
He  sells  produce  for  cash,  $21.93 
He  sells  balance  of  produce  for  cash.  $43.82 

What  is  his  profit? 


Apr. 

1. 

" 

1. 

" 

2. 

May 

1. 

" 

10. 

June 

1. 

" 

10. 

" 

15. 

" 

20. 

July 

30 

Sept 

1. 

25 


THE  LEDGER. 

The  ledger  is  a  book  in  which  the  original  entries  are  grouped  and 
classified  under  the  proper  headings.  It  is  generally  arranged  with  two  money 
columns  on  a  page,  with  space  just  to  the  left  of  each  money  column  in  which 
to  place  the  date,  in  some  cases  certain  explanations,  and  the  page  (and  initials) 
of  the  book  from  Avhich  the  items  are  taken.  In  correct  bookkeeping  no  entries 
are  ever  made  directly  in  the  ledger,  but  are  transferred  to  it  from  the  cash 
book  or  other  books  of  original  entry.  This  makes  the  ledger  a  book  of  sec- 
ondary entry  as  it  receives  only  such  entries  as  liave  already  l^een  made  in 
some  other  book. 

Posting.  The  process  of  transferring  the  original  entries  to  the  proper 
groups  in  the  ledger  is  called  posting.  In  bookkeeping  these  groups  are  known 
as  accounts.  This  process  is  not  at  all  difficult  but  must  be  done  with  the 
greatest  care  to  guard  against  error. 

In  posting  you  should  have  the  cash  book  and  ledger  arranged  conven- 
iently before  you.  Take  the  first  entry  under  cash  receipts,  turn  to  the  proper 
account  in  the  ledger  and  place  the  amount  in  the  money  column  on  the  right 
hand  side.  Next  put  the  date  in  the  date  column,  and  the  page  of  the  cash 
book  from  which  it  is  taken  in  the  narrow  column  just  to  the  left  of  the  money 
column  and  the  initial  C.  (cash  book)  just  to  the  left  of  the  page  column. 
Neixt  go  back  to  the  cash  book  and  place  in  the  narrow  column  marked  at 
the  top  L.  F.  (Ledger  Folio)  the  page  of  the  ledger  to  which  it  is  taken.  Take 
the  next  entry  in  cash  receipts  and  post  it  to  the  right  hand  side  of  the 
proper  account  in  the  same  manner  as  described  above.  Proceed  in  this 
manner  until  you  have  posted  all  the  entries  under  cash  receipts  to  their 
proper  accounts.  Next  take  the  entires  under  cash  payments  and  post  them  to 
the  ledger  in  like  manner,  \vith  this  exception,  that  all  such  entries  are  posted 


CASH  RECEIPTS. 


LP. 

1916 

Tan. 

1      1 

W.  H.  Simpson  Investment, 

2500 

00 

5      1 

Sales, 

26 

15 

6      1 

Sales, 

18 

92 

7      1 

Sales, 

2>2 

61 

9      1 

Sales, 

38 

19 

10      1 

Sales. 

41 

16 

11      1 

Sales. 

48 

27 

12      1 

Sales, 

52 

16 

13      1 

Sales, 

68 

77 

14      1 

'Sales, 

184 

16 

1 

Total  Receipts, 

3010 

39  , 

3010 

39 

Jan. 

.. 

Balance, 

2556 

57 

26 


on  the  left  hand  side  of  the  account  in  the  ledger.     The  reason  for  this  will 
be  explained  later. 

In  the  following  illustration  trace  each  entry  from  the  cash  book  to  the 
ledger. 

Note :     The  teacher  should  go  carefully  over  the  posting  with  the  class  in 
the  following  illustration. 


1916, 
Jan. 

Jan. 


Illustration. 

1.  W.    H.    Simpson    begins    a    retail    grocery    business,    investing 
cash  $2500. 

2.  Bought  mdse.  of  Ranger  &  Co.  for  cash $191.60 

3.  Bought  mdse.  of  A.  B.  Siler  &  Co.  for  cash 168.27 

4.  Paid  rent  for  month  in  advance 40.00 

5.  Cash  sales  for  the  day 26.15 

6.  Cash  sales  for  the  day 18.92 

6.  Paid  cash  for  miscellaneous  expenses 1.82 

7.  Cash  sales  for  the  day 32.61 

7.         Paid  clerk's  salary  for  week 15.00 

9.         Cash  sales  for  the  day 38.19 

10.  Cash  sales  for  the  day 41.16 

11.  Paid  delivery  expenses 10.00 

11.  Cash  sales  for  the  day 48.27 

12.  Cash  sales  for  the  day 52.16 

13.  Cash  sales  for  the  day 68.77 

13.         Paid  clerk's  salary  for  the  week 15.00 

15.         Sold  bal.  of  mdse.  on  hand  for 184.16 

15.         Paid  miscellaneous  expenses  amounting  to 12.13 


CASH  PAYMENTS. 


L.F. 


1916 

Jan. 

2 
3 

4 
6 

.\ 

14 
14 

Purchases, 
Purchases, 
Rent    for   January, 
Expense, 
Salaries,   clerk, 
Delivery  expense, 
Salaries,  clerk, 
Expense, 

191 

168 

40 

1 

IS 
10 

60 
27 
00 
82 
00 
00 
00 
13 

Total  Payments, 

453 

82 

14 

' 

Balance. 

2556 

57 

3010 

39 

27 


W.  H.  SIMPSON.  CAPITAL. 


1916 
Jan. 

I 

C 

1 

2500 

1 
SALES. 

1916 
Jan, 

5 
6 
7 
9 
10 
11 
12 
13 
15 

c 
c 
c 
c 
c 
c 
c 
c 
c 

i 

26 
18 
22 
38 
41 
48 
52 
68 
184 

15 
92 
61 
19 
16 
27 
16 
77 
16 

PURCH 

ASES. 

1916 
Jan. 

2 
3 

C 
C 

2 
2 

191 
168 

0' 
27 

1 

4 

2 

] 
40 

iK^ 

JT. 

• 

1916 
Jan. 

C 

GO 

6 
14 

EX 

PE 

NSE. 

=" 

1916 
Jan. 

c 

C 

2 
2 

1 
12 

82 

13 

SA 

:.Ai 

^lES. 

— 

— 

1916 
Jan. 

7 
14 

c 

C 

2 

2 

15 
IS 

00 
00 

E 

)EI 

JVE 

RY 

expe: 

\TS1 

1 

_ 

1916 
Jan. 

11 

C 

2 

10 

00 

' 

28 


THE  TRIAL  BALANCE. 

The  trial  balance  is  taken,  to  prove  the  equality  of  the  posting  to  the  two 
sides  of  the  ledger.  To  take  a  trial  balance  you  first  add  the  columns  of  the 
different  accounts  in  the  ledger  and  place  the  footing  of  each  column  close 
up  under  it  in  pencil.  Next  take  a  sheet  of  paper  and  rule  two  columns  on  the 
right  hand  side,  and  write  at  the  top  "Trial  Balance"  and  the  date. 

Turn  to  the  ledger  and  write  down  the  name  of  each  account  together 
with  the  footing,  placing  footings  of  accounts  on  the  right  hand  side  of  the 
ledger  in  the  right  hand  column  and  those  on  the  left  hand  side  in  the  left 
hand  column. 

Next  take  the  cash  balance  from  the  cash  book  and  put  it  in  the  left 
hand  column.     If  your  work  is  correct  the  two  columns  should  add  up  alike. 

A  little  study  will  show  why  this  is  true.  First  the  cash  book  is  balanced, 
the  two  sides  adding  alike.  The  cash  receipts  are  then  posted  to  the  right 
hand  side  of  the  ledger  and  finally  brought  down  in  the  right  hand  column 
of  the  trial  balance.  The  cash  payments  are  pbsted  to  the  left  hand  side  of 
the  ledger  and  finally  brought  down  in  the  left  hand  column  of  the  trial 
balance.  The  cash  balance  is  next  brought  down  in  the  left  hand  column- 
of  the  trial  balance.  As  the  cash  book  is  in  balance  the  trial  balance  niust 
also  balance  if  there  is  no  error  in  your  work. 

Study  the  following  trial  balance,  carefully  tracing  the  footings  of  each 
account  in  the  ledger  to  the  trial  balance. 

(Note  to  teacher.) 

It  is  very  important  that  the  pupils  understand  the  mechanical  part  of 
a  trial  balance,  and  the  reason  why  it  balances.  This  process  should  be  gone 
over  carefully  by  the  teacher  with  the  entire  class.  It  will  be  an  excellent  drill 
to  have  the  pupils  post  the  items  from  the  cash  book  in  the  illustration  to  a 
separate  sheet  of  ledger  paper  and  take  off.  a  trial  balance,  or  it  may  be  a 
good  idea  to  have  the  cash  book  written  up  as  well.  The  cash  book  and 
ledger  forms  for  this  exercise  can  be  ruled  up  on  blank  paper. 


TRIAL  BALANCE.  JAN.  15.  1916. 


W.  H.  Simpson,  Capital, 

2500 

00 

Sales. 

510 

39 

Purchases, 

359 

87 

Rent, 

40 

00 

Expense,  miscellaneous, 

13 

95 

Salaries, 

30 

00 

Delivery  expense. 

10 

00 

Cash, 

-2556 

57 

^- 

3010 

39 

3010 

39 

ACCOUNTS. 

As  we  have  seen  heretofore,  the  different  groups  in  the  ledger  are  known 
as  accounts.  When  the  accounts  in  the  ledger  are  properly  classified  each 
account  will  represent  some  one  definite  thing. 

We  have  in  the  foregoing  trial  balance : 

W.  H.  Simpson,  capital.,  showing  the  amount  he  had  invested  in  the 
business. 

Sales,  showing  the  amount  received  for  goods  sold. 

Purchases,    showing   the    amount    paid    for    goods    bought. 

Rent,  showing  the  cost  for  rent  of  store. 

Expense,  showing  the  cost  for  miscellaneous  expenses. 

Salaries,  showing  the  cost  for  clerks. 

Delivery  expense,  showing  the  cost  of  delivering  goods  sold. 

Cash,  showing  the  amount  of  cash  on  hand, 

29 


The  Profit  and   Loss   Statement. 

With  a  thorough  understanding  of  the  foregoing  accounts,  the  following 
profit  and  loss  statement  resolves  itself  into  a  simple  problem  in  arithmetic. 

The  purchases  are  deducted  from  the  sales,  giving'the  gross  profit.  From 
this  the  total  expenses  are  deducted  leaving  the  net  profit  of  $56.57.  As  the 
cash  on  hand  is  now  just  $56.57  more  than  at  the  beginning  of  the  oeriod.  it 
is  proof  of  the  correctness  of  the  work. 

Study  the  form  of  the  following  statement  carefully : 


PROFIT  AND  LOSS  STATEMENT 
Jan.  I  to  Jan.  15,  1916. 


Total  sales, 

Less  purchases   (cost  of  goods  sold), 

510.39 
359.87 

Gross  profit. 

Expenses — 

Rent, 

Expense,  miscellaneous, 

Salaries, 

Delivery    expense, 

40.00 
13.95 
30.00 
10.00 

150.52 

Total  expenses. 

93.95 

Net  profit. 

56.57 

PERCENTAGES. 

The  successful  business  man  thinks  and  manages  largely  in  terms  of 
percentage,  and  his  success  or  failure  is  generally  indicated  by  the  degree  to 
wdiich  he  studies  and  uses  such  percentages. 

A  careful  comparison  of  the  percentage  of  gross  profit,  net  profit,  and 
expenses  to  sales  from  month  to  month  and  year  to  year  will  surely  indicate 
the  causes  for  success  or  failure  of  a'  business. 

The  following  are  a  few  of  the  percentages  which  can  be  figured  from 
the  profit  and  loss  statement.     vStudy  them  carefully. 

What  is  the  percent  of  profit  on  the  capital  invested? 
Process — Divide  the  net  profit  by  the  capital. 
56.57  -^  2500  =  2.26  +  % 

What  percent  of  the  sales  is  gross  profit? 
Process — Divide  the  gross  profit  bv  the  sales. 
150.52  ~  510.39  =  29.49  +  % 

What  percent  of  the  sales  is  required  to  meet  total  expenses? 
Process — Divide  total  expenses  by  sales. 
93.95  ^  510.39  =  18.4  +  % 

What  percent  of  the  sales  is  net  profit? 
Process — Divide  the  net  profit  by  the  sales. 
56.57  H-  510.39  =  11.08  +  % 

What  is  the  percent  of  net  profit  on  the  cost? 
Process — Divide  the  net  profit  by  the  cost  of  sales. 
56.57  ^  359.87  =  15.71  +  % 

30 


1. 

Enter  the  following  transactions  in  the  cash  book  immediately  following 
the  last  cash  book  entries. 

1916. 

Feb.  1.  W.  H.  Simpson  begins  a  retail  grocery  lousiness,  investing 
cash  $2556.57. 

Feb.     1.     Bought  bill  of  mdse.  of  Gregg  &  Co.  for  cash $322.19 

Bought  bill  of  mdse.  of  A.  C.  King  for  cash 161.16 

Cash  sales  for  the  day 49.63 

Paid  miscellaneous  expenses 4.16 

Cash  sales  for  the  day 65.12 

Cash  sales  for  the  dav 71.13 

Cash  sales  for  the  day 48.12 


1. 
1. 
2. 

3. 

3. 

4. 

5. 

6. 

6. 

6. 

8. 

9. 

9. 

9. 
10. 
11. 
12. 
13. 
13. 
13. 
13. 


Bought  bill  of  mdse.  of  Smtih  &  Co.  for  cash 
Paid   clerk's  salary. 
Paid   delivery  expenses. 


19 

12.00 

7.05 

Cash  sales  for  the  dav 61.94 

62.16 

30.00 

3.34 


Cash  sales  for  the  day 

Paid  rent  of  store 

Paid  miscellaneous  expenses 

Cash  sales  for  the  day 62.93 

Cash  sales  for  the  day 71.16 

Cash  sales  for  the  day 84.66 

Sold  balance  of  mdse.  for  cash 168.21 

Paid  clerk's  salary  for  week 12.00 

Paid   delivery  expenses 8.21 

Paid  miscellaneous  expenses 9.24 

Balance  and  rule  the  cash  book,  post  the  entires  to  the  ledger  and  take  off 
a  trial  balance  and  profit  and  loss  statement. 

Instructions  for  Opening  the  Ledger. 
At  the  top  of  page  77  write  W.  H.  Simpson  capital.  On  the  5th  line  below 
and  in  the  middle  of  the  oage  write  "Purchases."  On  the  6th  line  below  pur- 
chases write  "Sales."  OA  the  12th  line  below  sales  write  "Salaries."  On  the 
5th  line  below  salaries  write  "Expense."  At  the  top  of  page  78  write  ^"De- 
livery Expense."     On  the  5th  line  below  delivery  expense  write  "Rent." 

Figure  the  following  percentages: 

What  is  the  percent  of  net  profifon  the  investment? 

What  percent  of  the  sales  is  gross  profit? 

What  percent  of  the  sales  is  net  profit? 

What  percent  of  the  sales  is  required  to  meet  salaries? 

What  percent  of  the  sales  is  required  to  meet  delivery  expenses . 

What  percent  of  the  sales  is  required  to  met  miscellaneous  expenses. 

What  percent  of  the  sales  is  required  to  meet  total  expenses? 

2. 
Enter  the  following  transaction  in  the  cash  book: 

1916.  .  .  , 

Mar.  1.     W.  B.  Sutton  begins  a  retail  furniture  business,  investing  cash 
$3000 

Bought  bill  of  goods  of  Bentlev  Bros,  for  cash $628.00 

Bought  bill  of  goods  of  Gentry  &  Co.  for  cash 

Bought  bill  of  goods  of  The  Atlas  Co.  for  cash 

Paid  rent  for  month 

Paid  miscellaneous   expense lo-/ 1 

Cash  sales  for  the  day HA^ 

Cash  sales  for  the  day ^o4.12 

Paid   delivery  expenses 071"'^" 

Bought  bill  of  goods  of  Hinman  Co.  for  cash ^rQ9i 

Cash  sales  for  the  day 068.-I 


Mar. 


8. 

8. 

9. 
10. 
11. 
11. 
11. 


397.91 

426.84 
45.00 


31 


Cash  sales  for  the  day 319.08 

Cash  sales  for  the  day 428.28 

Paid  clerk's  salaries  to  date 50.00 

Paid  delivery  expenses 21.16 

Paid  miscellaneous  expenses 18.87 

Cash  sales  for  the  day 189.16 

Cash  sales  for  the  day 368.27 

Cash  sales  for  the  day 221.22 

Cash  sales  for  the  day 166.68 

Paid   delivery  charges 16.22 

Paid  salaries  to  date 25.00 

Paid  miscellaneous  expenses 7.66 


(Open  the  following  accounts  in  the  ledger,  beginning  at  the  top  of  page 
79.  allowing  each  account  the  number  of  lines  indicated.) 

W.  B.  Sutton  capital  (3) 


Purchases 

(4) 

Sales 

(12) 

Salaries 

(4) 

Expense 

(4) 

Delivery  expense 

(5) 

Rent 

(3) 

Balance  and  rule  cash  book,  post  the  entries  to  the  ledger  and  take  off  a 
trial  balance  and  profit  and  loss  statement. 

Figure  the  percentages  as  called  for  in  the  preceeding  problem. 


Make  out  bills  for  the  following  purchases  and  sales.  After  the  answers 
have  been  approved  by  your  teacher,  enter  all  the  transactions  in  the  cash 
book.     Balance  and  rule  the  same. 

1916. 

June   1.     \V.  B.  Sutton  begins  a  grocery  business  investing  cash,  $3,000. 

June     2.     Bought  of  Burman  &  Co.,  giving  check  in  payment : 

50  cans  Blue  Label  coffee  ra! 15c 

50  cans  Spring  River  coffee  ^', 13c 

5  sacks  sugar,  500  lbs.,  @ 5c 

5  sacks  rice,  500  lbs.,  @.  .' 714c 

5  doz.  cans  corn  (cd 90c 

3.     Bought  of  Bentley  &  Co.,  giving  check  in  payment: 

4  doz.  bottles  Chief  Brand  olives  (ci 75c 

5  doz.  bottles  sweet  pickles  @ 70c 

10  lbs.  mustard  @ '. 20c 

5  lbs.  ginger  @ 18^/2C 

5  lbs.  cloves  @ l'^^/4c 

1  box  Crystal  soap,  100  cakes.  (Ti) 2I2C 

"         4.     Gaye  check  in  payment  of  rent  for  June $50.00 

"         4.     Paid  miscellaneous  expenses  in  cash 2.18 

"         6.     Bought  of  Burman  t^l'  Co..  giving  check  in  payment : 

150  cans  Spring  River  coffee  (a) 12^c 

20  sacks  sugar,  2,000  lbs.,  @ .  .^ S^c 

10  sacks  rice,  1,000  lbs..  @ 7Hc 

10  doz.  cans  tomatoes  (oj ^^^c 

8.     Sold  to  A.  C.  Stillwcll.  f..r  ca<h  : 

100  lbs.  sugar  @ 7/4c 

32 


25  cans  Blue  Label  coffee  @ ." 25c 

25  cans  Spring  River  coffee  (ai 26y^c 

100  lbs.   rice   @ 9c 

8.     Paid  clerk's  safary 18.00 

10.     Sold  to  Scuyler  Hotel  for  cash  : 

25  lbs.  Blue  Label  coffee  @ 25c 

25  lbs.  Spring  River  coffee  @ 2654c 

10.  Sold  to  J.  M.  Middleford  for  cash  : 

400  lbs.  sugar  @ 7]Ac 

200  lbs.  rice  @ Wa'^ 

10  cans  corn  @ 10c 

11.  Paid  delivery  expenses  in  cash 7.68 

11.  Paid  miscellaneous  expenses  in  cash 1.23 

12.  Sold  to  A.  C.  Stillwell  for  cash  : 

25  cans  corn  @ 10c 

25  cans  tomatoes  (a:; 10c 

200  lbs.  sugar  @.  .7 7^c 

12.  Sold  to  E.  M.  Pence  for  cash  ■ 

4  lbs.  mustard  @ 29c 

1  lb.  ginger  @ ■^Oc 

10  bottles  Chief  Brand  olives  (?i} 10c 

13.  Sold  to  J.  Edwards  for  cash  : 

100  lbs.  rice  @ 9]4c 

20  cans  corn  @ ^Oc 

200  lbs.  sugar  @ " 7){sc 

13.     Paid  clerk's  salary ^^-^ 

13.     Paid  delivery  expenses 7.1- 

15.     Bought  of  Bentley  &  Co..  giving  check  in  payment: 

20  boxes  Crystal  soan,  2,000  cakes,  @ 234c 

5  lbs.  cloves  @i l^>4c 

500  lbs.  rice  @. 6>4c 

10  doz.  cans  hominy  (a) 95c 

15.     Sold  to  Geo.  Borough  for  cash: 

50  lbs.  Spring  River  coffee  (a) 26i4c 

600  lbs.  sugar  @ ^^^c 

2  lbs.  cloves  (a), 30c 

600  lbs.  rice  @ ^^c 

15.  Sold  to  E.  M.  Pierce  for  cash: 

300  lbs.  sugar  @ n'A<^ 

10  cans  corn  @i ^Oc 

15  bottles  sweet  pickles  («) o^c 

5  boxes  Crystal  soap,  500  cakes,  (a) Wa^ 

16.  Sold  to  G.  W.  Beck  for  cash. 

6  lbs.  mustard  @ ^Oc 

2  lbs.  cloves  @ ^Oc 

50  cans  hominy  @ -^ 

5  boxes  Crystal  soap,  500  cakes,  @ 414c 

16.     Sold  to  Smaltz  Bros.: 

15  bottles  sweet  pickles  @ 10c 

5  boxes  Crystal  soap,  500  cakes,  @ in 

25  cans  tomatoes,  (@i ^Oc 

3  lbs.  cloves  @ ^;0c 

18  bottles  Chief  Brand  olives  @ lOc 

33 


17.     Sold  to  J.  M.  Mfddleford  for  cash: 

2  lbs.  cloves  @ 30c 

20  cans  hominy  @ gi/^f- 

1  box  Crystal  soap.  100  cakes.  (Tv 4i^c 

17.  Sold  to  Geo.  Borough  for  cash  • 

50  lbs.  Spring  River  coflFee  fa} 227^c 

2  sacks  sugar.  200  lbs..  rFu. /i^c 

4  sacks  rice,  400  lbs..  @. Qi/^c 

2  lbs.  ginger  @i .^ 20c 

1(S.     Sold  to  J.  Edwards  for  cash  ; 

25  lbs.  Spring  River  coffee  (a), 23c 

2  sacks  sugar,  200  lbs.,  (a). 854c 

18.  Sold  to  Scuyler  Hotel  for  cash  : 

1  sack  sugar.  100  lbs..  @ 8>^c 

2  sacks  rice.  200  lbs.,  (rif^. 8-^4c 

1  lb.  ginger  @ 29c 

10  bottles  Chief  Brand  olives  @ 9c 

20  bottles  sweet  pickles  @. .  . 9i/^c 

19.  Bought  of  Cable  Packing  Co..  giving  check  in  payment: 
100  sugar  cured  hams.  1.150  lbs.,  (al 21i/^c 

50  smoked  shoulders.  581  lbs.,  (q). .' 16'Hc 

"       20.     Sold  to  Scuyler  Hotel  for  cash  : 

25  sugar  cured  hams.  284  lbs.,  (a 25 14c 

10  smoked  shoulders.  102  lbs.,  (a). 21c 

"       20.     Sold  to  The  Union  Club  Co.  for  cash : 

25  sugar  cured  hams.  279  lbs.,  (a) 25 14c 

9  smoked  shoulders.  84  lbs.,  (a) 21c 

10  bottles  sweet  pickles  (a). .... 9c 

20.  Paid  clerk's  salary ^ 18.00 

20.     Paid  delivery  expenses  in  cash 7.75 

20.     Paid  miscellaneous  expenses 3.85 

22.     Sold  to  The  Hines  Restaurant  Co.  for  cash  : 

10  bottles  Chief  Brand  olives  (n) 9c 

25  lbs.  Spring  River  cofifee  rS; 23c 

1  sack  sugar.  100  lbs.,  @.  .^.' 8^c 

10  sugar  cured  hams,  116  lbs.,  (a} 25>4c 

5  smoked  shoulders,  48  lbs.,  (a) 21c 

"       23.     Sold  to  Clifton  Hotel  Co.  for  cash  : 

1  lb.  ginger  @ 30c 

1  lb.  cloves  @ 30c 

2  boxes  Crystal  soap,  200  cakes,  (a), 4^20 

25  cans  tomatoes  @ 9c 

"       23.     Sold  to  Mrs.  C.  E.  Kingsley  for  cash  : 

10  cans  tomatoes  @i 10c 

5  sugar  cured  hams.  .58  lbs.,  (o- 25 '4c 

1  smoked  shoulder,  11  lbs.,  rr?' 21c 

10  cans  hominy  @ 9c 

24.     Sold  to  J.  Edwards  for  cash; 

1  sack  sugar.  100  lbs..  (?i) S^^c 

1  sack  rice,  100  lbs.,  @.' 914c 

15  cans  tomatoes  (a) 9c 

"       25.     Sold  to  The  Union  Club  Co.  for  cash: 

15  sugar  cured  hams,  168  lbs.,  (a] 2534*-' 

\        20  cans  hominy  (a) 9c 

34 


26.     Sold  to  The  Bradley  Hotel  Co.  for  ca.sh  : 

30  sugar  cured  hams,  413  lbs.,  @ 25c 

20  cans  tomatoes  @ 9c 

"       27 .     Sold  to  The  Hines  Restaurant  Co.  for  cash  : 

2  sacks  rice,  200  lbs.,  @ 9>4c 

1  box  Crystal  soap,  100  cakes,  @ 4i/4c 

"       27.     Sold  to  The  Clifton  Hotel  Co.  for  cash  : 

2  boxes  Crystal  soap,  200  cakes,  (a) 4c 

20  cans  hominy  @ 9^c 

25  smoked  shoulders,  334  lbs.,  @ 20j/2C 

"       27.     Paid  clerk's  salary 18.00 

"       27.     Paid   deliverey  expenses 3.19 

27.     Paid  miscellaneous  expenses 3.84 

(Open  the  following  accounts  in  the  ledger,  beginning  at  the  top  of  page 
81,  allowing  each  account  the  number  of  lines  indicated.) 

M.  B.  Sutton,  capital   (3) 

Purchases  (6) 
Sales                               (28) 

Salaries  (6) 

Expense  (6) 

Delivery  expense  (6) 

Rent     '  (3) 

Post  all  entries  to  the  ledger. 

Take  ofT  trial  balance  and  profit  and  loss  statement  and  figure  the  per- 
centages called  for  in  the  preceding  problems. 

DEFINITIONS. 

Inventory.     A  list  of  the  goods  on  hand,  usually  stated  at  the  cost  price. 

Resource.  Anything  of  value  belonging  to  a  person,  firm  or  corporation, 
is  a  resource.  Cash,  accounts  owing  to  us,  and  any  property  owned,  are 
examples  of  resources. 

Liability.  Anything  owed  by  a  person,  firm,  or  corporation,  is  a  liability. 
Accounts  and  notes  that  we  owe  are  examples  of  liabilities. 

Net  Worth.  The  excess  of  resources  over  liabilities  is  the  net  worth. 
A  man  has  cash  and  other  resources  amounting  to  $5,871.  His  liabilities,  or 
what  he  owes,  are  $871.    The  difference  is  $5,000,  which  is  his  net  worth. 

Purchase  and  Sales  on  Credit. 

In  the  preceding  work  all  of  our  transactions  have  been  on  a  cash  basis. 
While  there  are  some  firms  that  always  buy  and  sell  for  cash,  they  are  the 
exception,  most  firms  buying  and  selling  to  a  large  degree,  on  credit. 

When  the  business  is  on  a  cash  basis,  we  can  keep  all  the  necessary 
records  in  a  cash  book  and  ledger.  As  the  following  work  contains  purchases 
and  sales  on  credit,  it  is  necessary  to  have  other  books  in  which  to  record 
such  transactions.  The  purchase  book  is  used  to  Record  the  purchases  on 
credit,  and  the  sales  book  is  used  to  record  the  sales  on  credit. 

When  goods  are  purchased  a  bill  is  always  received  showing  all  the  items, 
prices,  total,  etc.  For  this  reason  it  is  necessary  to  enter  only  the  date,  name 
and  amount  in  the  purchase  book.  When  a  sale  is  made  on  credit,  a  bill  is 
always  made  out  and  sent  to  the  customer,  and  the  name,  the  terms,  the  items, 
prices  and  total  should  all  be  entered  in  the  sales  book,  as  this  is  the  only 
record  of  the  transaction  that  we  have. 

Notice  the  following  forms  for  the  purchase  book  and  the  sales  book. 

35 


Illustration. 

PURCHASH  BOOK. 


1916 
July 


Smith   Grocery  Co.,   Erie,   Pa.,  Bill  of  June  27 

H.   O.   Herman,   York,   Pa.,  Bill  of  July    l' 

Green   &  Co.,  Clyde,  C,  Bill  of  July    5, 

Total   purchases. 


400 

271 

28 


699 


SALES  BOOK. 


July   1.   1916. 

\\.  J.    Edwards,   acct.   30  days, 
10   lbs.    smoked    ham, 
15  sugar, 
1  sack  rice,  100  lbs.. 

@  25c. 
@     9c, 
@     Sc, 

2 

1 
8 

50 
35 
00 

11 

85 

4. 

li.  W.  Wilbur,  acct.    10  days, 
1   sack  sugar.  100  lbs., 
10  bottles  olives, 
10  cans   hominy, 
5  lbs.   allspice. 

@     8Hc, 
@     9c, 
@    9c, 
@  28c, 

8 

1 

50 
90 
90 
40 

11 

70 

4. 

A.  F.  Ridgeway  &  Co.,  acct.  30  days, 
10   sugar    cured    hams,    122   lbs.. 

Total  sales, 

@  25c, 

30 

SO 

30 

50 

54 

05 

4. 
Instructions. 

(Open  the  purchase  l)0()k  on  page  62.) 

(Open  the  sales  book  on  page  63.) 

Write  the  entries  for  the  following  transactions,  using  the  piu'chase  l)ook, 
sales  book,  and  cash  book. 

All  j)urchases  on  account  will  l)e  entered  in  the  purchase  l)ook.  All  sales 
on  account  will  be  entered  in  the  sales  book  and  all  cash  recei])ts  and  ca^h 
payments  in  the  cash  book. 

Memoranda  of  Transactions. 

July  1,  1916.  W.  B.  Sutton  begins  a  wholesale  grocery  business  investing 
cash"  $4,000. 

July      1.     Paid  one  month's  rent  in  cash $  75.00 

"        2.     Bought    bill    of   goods    of    Burnian    «.K:    Co..    Toledo,    ().,    on 

account  10  days.     Anit.  <'f  bill  (enter  purchase  book)..    528.61 
3.     Bougiit  bill  of  goods  of  Bentley  \-  Cn.,   Dayton,  ()..  .m   ac- 
count 10  days.    Amt.  of  bill 7()(>.80 

3.  Bought  bill  of  goods  from  The  Cable  Pack  nig  Co.,  Chicago, 

111.,  on  account  20  days.     Amt.  of  bill 368.50 

4.  Sold  to  A.  C.   Stillwell,  .Akron.  (  )..  on   accl.    10  days   (enter 

in  sales  book)  : 

2  sacks  rice,  200  lbs.,  @ 8c 

2  sacks  sugar,  200  lbs.,  (fv 7>lc 

36 


1  box  Crystal  soap,  100  cakes.  @ 2>4c 

5  doz.  cans  corn  @ 95c 

5.  Sold    to    Scuyler    Hotel,    Springfield,    ().,    un    acct. 

10  days : 

50  lbs.  Spring  River  coffee  @ 19c 

50  bottles  sweet  pickles  @ gy^c 

5  sugar  cured  hams,  55  lbs.,  @ 20c 

6.  Sold  to  The  Union  Club,  Columbus,  O.,  on  acct.  10 

days : 
3  doz.  bottles  Chief  Brand  olives  @ 85c 

4  doz.  cans  peas  @ 90c 

2  lbs.  ginger  @ 25c 

2  doz.  bottles  sweet  pickles  @ 90c 

6.     Paid  clerks'  salaries  in  cash 22.00 

6.     Paid  miscellaneous  expenses  in  cash 8.16 

6.     Paid  delivery  expenses  by  check 7.95 

8.     Bought  bill  of  goods  of  Burman  &  Co.  on  acct.  20 

days.     Amount  of  bill 85.12 

8.     Sold  to  E.  M.  Pierce  Co.,  Columbus,  O.,  on  acct   10 
days: 

100  lbs.  Blue  Label  coffee  @ 18c 

100  smoked  shoulders,  ^^50  lbs.,  @ 16c 

10  doz.  cans  corn  @ 90c 

3  sacks  rice,  300  lbs.,  @ 7^c 

8.     Sold  to  A.  C.  Stillwell  on  acct.  10  days : 

5  doz.  cans  corn  @ 95c 

20  doz.  cans  peas  @ 90c 

50  smoked  shoulders.  476  lbs.,  (gl 16c 

25  sugar  cured  hams.  282  lbs.,  @ 22c 

8.     Gave    Burman    &   Co.   check   in   payment   of   bill   of 
July  2. 
Enter  in  cash  payments  as   follows : 


July    !   8  Burman  &  Co..  Bill  July  2  528       ol 


9.     Sold  to  Mrs.  C.  E.  Kingsley,  Columbus,  on  acct.  30 
days : 
5  doz.  cans  tomatoes  @ 95c 

3  lbs.  cinnamon  @ 25c 

1  doz.  Chief  Brand  olives  @ 85c 

4  smoked  shoulders,  42  lbs.,  @ 16c 

9.     Sold  to  The   Hines   Restaurant   Co.,   Columbus,   O..  ' 

on  acct.  30  days : 

100  lbs  Spring  River  coffee  @ 19c 

20  sugar  cured  hams.  240  lbs.,  @ 22c 

10.     Gave  Bentley  &  Co.  check  in  payment  of  bill  of  July  3 766.i 

10.  Sold  to  J.  Edwards,  Tiffin,  O.,  on  account  30  days : 

20  sacks  sugar,  2,000  lbs.,  @ 7c 

10  sacks  rice,  1,000  lbs.,  (a) 7>^c 

11.  Sold  to  Scuyler  Hotel  Co.  on  account  10  days: 

5  sugar  cured  hams,  59  lbs..  @ 22c 

6  doz.  cans  corn  @ 95c 

12.  Sold  to  The  Union  Club  on  acct.  10  days : 

10  sacks  sugar,  1.000  lbs.,  @ 7c 

10  doz.  cans  tomatoes  @ 92c 

1  sack  rice,  100  lbs.,  @, 7%c 

13.  Receive  check  from  the  Scuyler  Hotel   in  payment 

of  bill  of  July  5,  $24.75. 

37 


Knter  in  cash  receipts  as  follows : 


July      13  Scuyler   Hotel,  Bill    July   5  24       75 


13.     Paid  clerks'  salaries  for  week 22.00 

\3>.     Paid  delivery  expenses  by  check 17.12 

13.     Paid  miscellaneous  expenses 4  12 

15.  Received    check     from    The     Union     Club    in     |)ay- 

ment  of  bill  of  July  6 " 8.45 

"      15.     Sold  to  E.  M.  Pierce  Co.  on  acct.  10  days: 

100  lbs.  Spring  River  cofifee  (a) ' 19c 

90  lbs.  Blue  Label  coffee  (^,7[ Igi-^c 

100  bottles  sweet  pickles  @ 8c 

50  sacks  sugar.  5,000  lbs..  @ 714c 

16.  Received  check  from  A.  C.  Stilhvell   in  payment  of 

of  bill  of  July  4 36.25 

16.  Received  check  from  The  E.  M.  Pierce  Co.  in  settle- 

ment of  bill  of  July  8 201.50 

17.  Receive  check  from  A.  C.  Stillwell  in  part  payment 

of  bill  of  July  8,  $100.00. 

Enter  in  cash  receipts  as  follows  : 
Inly      17  A.    C.    Stillwell,    part    payment    Ijill    July    8  100      GO  j 


18.     Receive    check    from    the    Scuyler    Hotel    in    pay- 
ment of  bill  of  July  11 18.6S 

20.     Received    check    from    The    Union    Club    to    apply 

on  acct ' 5O.OC1 

20.     Paid  salaries  for  the  week 22.00 

20.     Paid  delivery  expenses 8.15 

20.     Paid  miscellaneous  expenses 3.12 

20.     Gave  Cable   Packing  Co.  check  to  apply  on   bill  of 

July  3rd    ' 150.00 

22.  Bought  bill  of  goods  of  Bentley  .'^r  Co.  on  acct.  10 

days    98.1? 

23.  Sold  to  Scuyler  Hotel  on  acct.  20  days: 

10  sacks  sugar,  1,000  lbs.,  (a) G^ic 

4.doz.  cans  tomatoes  @ 85c 

25.     Sold  to  A.  C.  Stillwell  on  acct.  20  days: 

5  sacks  rice,  500  lbs.,  @ 7y4C 

2  lbs.  cloves  @ 1  ^V 

25.  Receive   check   from   A.   C.    Stillwell    for   balance   of 

bill  of  July  8 60.".=. 

26.  Receive    check    from     Union    Club    for    l)alaiice    ot 

bill  of  July  12 36.45 

27.  Receive  check  from  E.  M.  Pierce  Co.  in  payment  of 

bill  of  July  15 406.15 

27.     Receive  check  from  Mrs.  C.  E.  Kingsley  in  payment 

of  bill  of  July  9 ■ '. 13.07 

27.     Paid  clerks'  salaries 22.00 

27.     Paid   delivery   expenses 9.12 

27.     Gave  Burman  Si  Co.  check  in  p.iynu'ut  of  bill  of  July  8 85.12 

30.     Gave  Bentley  cl:  Co.  check  in  paynunt  of  bill  of  July  22 98.12 

38 


INSTRUCTIONS  FOR  POSTING. 

Balance  and  rule  the  cash  book.  JDringing  the  cash  balance  down  below 
the  ruling.  Foot  and  rule  the  purchase  book  and  sales  book  as  shown  in  the 
illustrations  preceding  and  put  the  footings  down  in  ink. 

(Open  the  following  accounts  in  the  ledger,  allowing  each  account  the 
number  of  lines  indicated.     Enter  them  in  the  exact  order  given.) 

W.   B.   Sutton,  capital 3 

Purchases    4 

Sales    4 

Salaries    6 

Delivery  expense   6 

Expense    6 

Rent    3 

Burman   &   Co 3 

Bentley  &  Co 3 

Cable  Packing  Co 3 

A.  C.  Stillwell 5 

Scuyler    Hotel    3 

The  Union  Club   4 

E.   M.  Pierce  Co 4 

Mrs.   C.   E.   Kingsley 3 

Hines  Restaurant  Co 3 

J.   Edwards    3 

From  the  purchase  book  post  the  amount  of  each  separate  purchase  to 
the  right-hand  side  of  the  account.  The  first  item  posted  will  be  528.61  to 
the  right-hand  side  of  Burman  &  Co.'s  account,  being  sure  to  put  the  date 
and  the  page  of  the  purchase  book  in  the  ledger,  and  also  the  initials  P.  B. 
(purchase  book)  just  before  the  page  column  in  the  ledger.  The  initials 
P.  B.  show  what  book  the  item  is  posted  from.  In  the  ledger  folio  column  in 
the  purchase  book,  put  the  page  of  the  ledger  to  which  it  is  posted. 

Post  the  other  purchases  to  the  same  side  of  their  accounts  in  the  same 
manner. 

Next  post  the  footing  of  the  purchase  book  to  the  left-hand  side  of  the 
purchase  account  in  the  ledger,  being  sure  to  date,  page,  and  initial  it  as  with 
the  items  just  posted. 

You  will  notice  that  the  items  posted  to  the  right-hand  side  of  the  ledger 
will  just  equal  in  amount  the  item  posted  to  the  left-hand  side;  therefore  the 
posting  from  this  book  is  in  balance. 

Next  post  the  entries  in  the  sales  book  to  the  left-hand  side  of  the 
accounts  in  the  ledger.  The  f^rst  item  will  be  36.25  to  A.  C.  Stillwell's  account. 
Put  the  date,  page  and.  initials  S.  B.  (sales  book)  in  the  ledger  and  put  the 
page  of  the  account  in  the  ledger  in  the  folio  column  in  sales  book.  After  all 
the  entries  are  posted,  post  the  footing  to  the  right-hand  side  of  the  sales 
account  in  the  ledger,  dating,  paging  and  initialing  it  properly.  You  will 
notice  that  the  items  posted  to  the  left-hand  side  of  the  ledger  will  just  equal 
in  amount  the  total  posted  to  the  right-hand  side  of  sales  account.  Therefore 
the  posting  from  the  sales  book  is  in  balance. 

Now  post  the  entries  in  the  cash  receipts  and  cash  payments  as  you  have 
done  before.  If  your  work  is  correct,  the  accounts  with  Burman  &  Co., 
Bentley  &  Co..  Union  Club,  E.  M.  Pierce  Co.,  and  Mrs.  C.  E.  Kingsley  will 
be  in  balance,  i.  e.,  the  two  sides  will  add  alike  on  each  account.  This  is  as  it 
should  be,  as  these  accounts  have  been  paid  in  full. 

Proceed  to  take  ofif  a  trial  balance,  putting  in  all  tlie  accounts  that  are  not 
in  balance.  With  the  Cable  Packing  Co.'s  account  (put  the  difference  be- 
tween the  two  sides  in  the  right-hand  column  of  the  trial  balance. 

39 


(Note  to  Teacher.) 

After  the  work  has  been  completecl  iij)  to  this  point,  a  careful  study  should 
be  made  of  the  w(Trk  to  show  why  the  trial  balance  is  in  balance. 

DOUBLE  ENTRY  BOOKKEEPING. 

As  the  name  implies,  all  transactions  in  doul)lc  entry  bookkeeping  are 
entered  twice.  A  brief  survey  of  the  foregoing  work  will  show  this  to  be 
true.  The  cash  book,  while  a  book  of  original  entry,  is  in  itself  an  account 
with  cash  showing  the  cash  received,  cash  paid,  and  the  balance,  the  same  a? 
the  various  accounts  in  the  ledger  show  their  respective  balances. 

The  two  sides  of  the  accounts  are  known  in  double  entry  as  Debit 
(Dr.)  and  Credit  (Cr.).  The  cash  receipts  is  known  as  the  cash  Dr.  and  the 
cash  payments  as  the  cash  Cr.  The  left-hand  side  of  the  ledger  is  known  as 
the  Dr.  side  and  the  right-hand  side  as  the  Cr.  side. 

All  cash  received  is  entered  under  cash  as  Dr.  and  then  posted  to  the 
credit  side  of  various  accounts  in  the  ledger.  Therefore  each  transaction  has 
been  debited  to  cash  and  credited  to  some  other  account. 

All  cash  paid  out  has  been  entered  under  cash  Cr.  and  then  posted  to  the 
debit  side  of  various  accounts  in  the  ledger;  therefore  each  transaction  has 
been  credited  to  cash  and  debited  to  some  other  account. 

From  the  purchase  book  we  post  each  entry  to  the  credit  side  of  the 
account  with  the  firm  of  whom  purchased,  and  at  the  end  of  the  month  we 
post  the  total  of  all  the  entries  to  the  debit  side  of  purchases  account.  There- 
fore each  entry  has  l^een  debited  to  purchases  and  credited  to  the  proper 
firm  account. 

From  the  sales  book  we  post  each  entry  to  the  debit  side  of  the  account 
with  the  firm  to  whom  sold,  and  at  the  end  of  the  m.onth  we  post  the  total 
of  all  these  entries  to  the  credit  side  of  sales  account.  Therefore  each  entry 
I  has  been  debited  to  the  proper  firm  account  and  credited  to  sales  account. 

I  JOURNALIZING. 

•  Journalizing    is    the    j-)rocess    of    fletermining    what    accounts    should    be 

debited  and  credited  for  the  various  transactions. 

From   the   foregoing  we  arrive  at   the   following   simple   rules   for   jour- 
;       nalizing: 

/  When  cash  comes  in — debit  cash   and   credit   the  account   for  which  the 

/        cash  is  received. 

When  cash  is  paid  out — debit  the  account  for  which  it  is  paid  and  credit 
cash. 

When  goods  are  purchased  on  account,  debit  purchases  and  credit  the 
account  of  the  person  or  firm  of  whom  purchased. 

When  goods  are  sold  on  account,  debit  the  account  of  the  person  or  firm 
to  whom  sold  and  credit  sales. 

From  these  rules  we  see  that  we  credit  the  acccnnits  of  people  when  we 
buy  of  them,  and  debit  their  accounts  when  we  pay  them  ;  and  that  we  debit 
the  accounts  of  people  to  whom  we  sell  and  credit  their  accounts  when  they 
pay  us.  Therefore  all  debit  balances  to  such  accounts  represents  amounts 
owed  to  us  and  all  credit  balances,  amounts  ^ve  owe  to  others. 

(Note  to  Teacher.) 

It  would  be  well  to  take  up  the  different  accounts  in  the  trial  balance 
and  quiz  the  class  as  to  their  meaning.  A  thorough  understanding  of  the 
accounts  is  essential  before  jnoceeding. 

40 


Instructions. 

The  inventory  of  goods  July  31  i.s  $861. .^0.  This,  of  course,  represents 
goods  purchased  during  the  month  that  have  not  yet  been  sold.  An  inspec- 
tion of  the  accounts  in  your  trial  balance  should  show  the  following : 


Resources — 
Cash, 

Inventory  July  31, 
A.  C.  Stillwell, 
Scuyler  Hotel, 
Hines   Restaurant   Co., 
J.   Edwards, 

.luly 
(net 

31), 
wor 

th 

July  1), 

$3i!l06.86 

861.50 

36.63 

.68.40 

71.80 

215.00 

Total  resources. 

Liabilities — 

Cable  Packing  Co., 

$4360.19 
218.50 

Net  resources    (net  worth 

Deduct— 
W.  B.  Sutton,  Capital  acct. 

4141.69 
4000.00 

Increase   in   net  worth. 

141.69 

From  this  we  see  that  W.  B.  Sutton's  net  worth  has  increased  141.69. 
therefore  his  profit  is  just  this  amount. 

Make  out  a  profit  and  loss  statement,  using  the  following  form.  If  your 
work  is  correct,  your  net  profit  should  be  141.69. 


PROFIT  AND  LOSS  STATEMENT, 
July  1  to  July  31,  1916. 


Sales  for  the  month. 

Deduct— 
Purchase   for  the   month. 
Less  Inventory  July  31,  1916. 

-.. 

Cost  of  goods  sold, 

. .  , 

Gross   profit. 

Expenses — 
Salaries, 

Delivery  expenses. 
Miscellaneous   expense, 
Rent, 

Total  expenses. 

Net  profit  for  the  month, 

THE  JOURNAL. 

The  journal  is  a  book  of  original  entry  usually  arranged  with  tvvo 
columns,  Dr.  and  Cr.  on  the  right-hand  side.  The  journal  is  used  for  certain 
opening  entries,  for  closing  entries,  and  such  other  entries  as  do  not  belong 
in  any  other  books  of  original  entry. 

All  purchases  and  sales  on  account  might  be  put  in  the  journal  and  in 
that  case  they  would  take  the  form  as  shown  in  the  following  illustration. 
In  the  journal  both  the  debit  and  credit  accounts  are  written  for  each  tran.s- 
action.  This  makes  more  work  in  writing  the  original  entry  and  more  work 
in  posting,  as  the  debit  and  credit  for  each  transaction  must  be  posted 
separately. 

The  only  entry  we  will  put  in  the  journal  is  the  closing  entry. 

41 


Illustration. 


L.F. 

Dr. 

Cr. 

Dr. 

Cr. 

Jan. 

5. 

1916. 

Purchase^. 

James  Smith, 

Billot  Jan.  2, 

120 

50 

120 

50 

Purchases. 

Wm.    Orton, 

7. 

Bill  of  Dec.  31, 

58 

90 

58 

90 

O.   C.    Hunt. 
Sales, 

8. 

On  acct.  10  days, 

26 

50 

26 

50 

10  sacks   flour, 
5   lbs.  cinnamon. 

@  2.50            25.00 
@     .30              1.50 

CLOSING  THE  LEDGER. 

The  ledger  is  generally  closed  at  the  end  of  every  year  or  every  six 
months.  It  may  be  closed  oftener  if  desired.  The  time  during  which  the 
books  are  allowed  to  run  without  clo.^ing  is  known  as  the  fiscal  period.  An 
inventory  is  taken  at  the  close  of  such  period  without  which  the  books  cannot 
be  closed  or  the  net  profit  figured  accurately. 

After  the  ledger  is  closed,  only  the  resource  and  liability  accounts  and 
the  proprietor's  capital  account  will  remain  open. 

Make  the  following  entry  in  the  journal  on  page  66  and  post  it  to  the 
ledger;    open  inventory  account  on  page  85: 


July  31,  1916. 


Sales  to  close. 

1348 

08 

Inventory,   July   3|, 

861 

50 

Purchases   to  close, 

1847 

15 

Salaries  to  close, 

88 

00 

Delivery  expense  to  close. 

42 

34 

Miscellaneous  expense  to  close, 

15 

40 

Rent  to  close, 

75 

00 

W.    B.    Sutton,    capital,    net    profit. 

141 

(.9 

Vou  will  now  rule  the  accounts  in  the  ledger.  Rule  all  the  accounts 
with  persons  or  firms  by  drawing  a  single  line  under  the  balancing  items  on 
each  side  as  shown  in  the  following  illustration. 


Illustration. 

S.  C.  SMITH  &  CO. 


1916 
July 

1 

12 
18 

S.B. 

1 

850 

25 

1916 
July      10 

,20 
23 

1 

C.I  2 

C,  3 
C.    4 

850 

25 

S.B. 
S.B. 

1 

327 

60 

227 
100 

00 
00 

154 

00 

42 


Rule    purchases,    sales,    salaries,    delivery    expense,    expense    and    rent 
accounts,  as  shown  in  the  following  illustration. 


Illustration. 

PURCHASES. 


1916 
July 

H 

P.B. 

■1 

1857 

02 

1916 
July 

31 

To  close 

J 

.i 

1857 

02 

1 

1 

SALES. 

1916 
July 

,^i. 

To  close           J. 

1  1  2168 

15 

1916 
_J_uly_ 

11 

S.B. 

4 

2168 

15 

1 

1 

SALARIES. 

1916 
July 

10 
17 
24 

c. 

C. 
C. 

8 

28  '  00 
28     00 
28  j  00 

1916 
July 

31 

To  close 

J 

1 

84 

00 

84 

00 

84 

00 

1            I        1 

DELIVERY  EXPE] 

VSE. 

1916 
July 

10 
24 
30 
31 

C. 
C. 
C. 
C 

i 

9 
10 

21 
6 

1 
1 

12! 
12 
19 
12 

1 

j    1916 
July 

1 

31 

To  close 

1 

j 

J-l-l 

i 

29 

55 

1  ^29_ 

55 

29 

55. 

1 

^    1 

EXPENSE. 

1916 
July 

2 
4 
16 

l 
C.l  2 
C. '  2 
C     4 

1 

12 

1        ' 

80 
16 
01 

1916 
July 

31 

To  close 

J 

1 

16 

97 

16 

97 

j       16 

97 

t 
1 

RENT. 

1916 
July 

J_ 

1 

1 
C  1  2 

1            1 
50  1  00 

1916 

31 

1 

To  close 

.j-h 

50 

00 

1 

r 

r 

1 

43 


Form  in  •keeping'  household  account;^ 


1916 


Jan. 

1 
1 
1 
1 
2 
2 
2 
2 

Allowance    for    month. 
Groceries. 
Meats. 
Soap, 
Groceries. 
Meats. 
Sugar. 
Milk.                ;       1 

65 

00 

75 
25 
25 
50 
30 
25 
10 

2 

Coal, 

2 

25 

" 

3 

Groceries. 

60 

" 

3 

Broom, 

15 

" 

3 

Meats, 

50 

" 

3 

Gasoline, 

50 

" 

4 

Groceries. 

40 

" 

4 

Meats, 

37 

" 

4 

Milk, 

10 

" 

5 

" 

6 

" 

7 

" 

8 

" 

9 

" 

10 

Etc. 

Balance, 

-10 

22 

65 

00 

65 

00 

Feb. 

1 

Balance, 

10 

22 

" 

1 

Monthly  allowance, 

65 

00 

44 


46 


47 


48 


49 


50 


51 


52 


53 


54 


55 


56 


57 


58 


,59 


60 


61 


62 


63 


64 


65 


66 


67 


68 


69 


70 


71 


72 


73 


74 


75 


76 


77 


I       I 


78 


79 


81 


82 


83 


84 


^ 


86 


THIS  BOOK  IS  BUE  ON  THE,, 

STAMPED  BEL^^T  DATE 


JNTERUBRARYLOAN 


^^  2l~100m-8.'34 


VD  05849 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


P.i^ 


